HFG Holdings Inc.

November 01, 2007 12:48 ET

HFG Holdings Inc. Announces Completion of Initial Public Offering

CALGARY, ALBERTA--(Marketwire - Nov. 1, 2007) - HFG Holdings Inc. ("HFG" or the "Corporation") is pleased to announce that it has successfully completed its initial public offering through Canaccord Capital Corporation of 1,250,000 common shares at a price of $0.20 per share for aggregate gross proceeds of $250,000. HFG has received conditional listing approval for its common shares on the TSX Venture Exchange and expects that trading will commence shortly under the symbol "HFG.P".

As part of the agency agreement with Canaccord Capital Corporation, HFG has granted to Canaccord Capital Corporation a non-transferable option to purchase up to 125,000 common shares at $0.20 per share. The option will be exercisable at any time from the date of issuance to 24 months from the date of listing of HFG's common shares on the TSX Venture Exchange.

In addition, HFG has adopted a stock option plan for the benefit of directors, officers and employees of, and consultants and service providers to, the Corporation. HFG has granted options to purchase 525,000 common shares of the Corporation at $0.20 per share to directors and officers of the Corporation, as previously disclosed in the final prospectus of the Corporation dated October 17, 2007.

Directors and officers of the Corporation hold directly or indirectly, or exercise control or direction over, an aggregate of 4,000,000 common shares of HFG, which represents approximately 76.2% of the outstanding common shares of the Corporation. An aggregate of 4,000,000 common shares are being held in escrow pursuant to an escrow agreement dated July 31, 2007 (the "Escrow Agreement"). Under the Escrow Agreement, 10% of the escrowed Common Shares will be released from escrow on the issuance of final acceptance by the TSX Venture Exchange and an additional 15% will be released on the dates 6 months, 12 months, 18 months, 24 months, 30 months and 36 months following the initial release.

HFG is a capital pool company governed by the policies of the TSX Venture Exchange. HFG's principal business is the identification and evaluation of assets or businesses with a view to completing a Qualifying Transaction.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • HFG Holdings Inc.
    Timothy P. Halter
    Chief Executive Officer, Chief Financial Officer
    and a Director
    (972) 233-0300
    Email: thalter@halterfinancial.com