Arbitrage Exploration Inc.
CNSX : AEA

June 03, 2015 16:45 ET

Arbitrage Announces Closing of Second Tranche of Private Placement

TORONTO, ONTARIO--(Marketwired - June 3, 2015) - Arbitrage Exploration Inc. ("Arbitrage" or the "Company") (CSE:AEA) is pleased to announce that, further to its news release dated May 27, 2015, the Company has completed the second tranche of a private placement financing of units (the "Units") at a price of CDN$0.05 per Unit for gross proceeds of $15,750 through the issuance of 315,000 Units of the Company (the "Offering"). Each Unit is comprised of one (1) common share of the Company (a "Common Share") and one (1) common share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to purchase one (1) additional Common Share of the Company at a price of $0.10 per Common Share until June 3, 2017.

In connection with the Offering, the Company also paid $787.50 and issued 15,750 broker warrants to certain eligible parties with respect to services provided in connection with the Offering. Each broker warrant entitles the holder thereof to purchase one additional Common Share at a price of $0.10 until June 3, 2017.

Gross proceeds raised from the Offering will be used for general operating expenses.

The securities issued in connection with the Offering are subject to a four month and one day hold period commencing from the closing date pursuant to applicable securities laws.

In addition, one of the directors of the Company participated in the Offering. The participation by such director constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to the related party nor the consideration being paid by the related party will exceed 25% of the Company's market capitalization. A material change report in respect of the related party transaction was not filed at least 21 days in advance of the closing of Offering due to the Company's immediate need to address its financial situation.

Forward-looking Information Cautionary Statement

Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with

regulatory approvals, including that of the CSE. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company's filings with Canadian securities regulators, which filings are available at www.sedar.com

Contact Information

  • Arbitrage Exploration Inc.
    Judy Baker
    President
    (416) 786-7860