TORONTO, ONTARIO--(Marketwired - Oct. 14, 2016) - Further to its announcement via news release dated October 4, 2016 concerning the first closing of its arm's length brokered private placement of subscription receipts (the "Private Placement") by Findev Inc. (TSX VENTURE:FDI) (the "Company" or "Findev") in connection with its proposed change of business from one focused on the digital distribution of games for Smart TVs, next-generation set-top boxes and over-the-top devices, to that of lending to, investing in and financing real estate transactions (the "Proposed COB"), the Company is pleased to announce the conversion of subscription receipts to common shares and the release of funds to the Company for both the private placement of 2,225,000 subscription receipts to Plazacorp Holdings Limited and for the first closing of the Private Placement. Plazacorp Holdings Limited now holds a total of 8,891,667 common shares, or approximately 40% of the Company's outstanding shares.
On October 7, 2016, the Company issued a total of 2,225,000 common shares to Plazacorp Holdings Limited at a price per share of $0.525 resulting in a release of gross proceeds to the Company of $1,168,125. The Company also issued a total of 17,206,677 common shares under the Private Placement at a price per share of $0.60 resulting in a release of gross proceeds to the Company of $10,324,006. In addition, the Company issued a total of 17,206,677 common share purchase warrants, half with an 18-month expiry and the other half with a 36-month expiry, and each exercisable at $0.70, provided that the Company may in its sole discretion call the warrants if and when and the common shares trade at a price equal to or greater than $1.20 for 5 consecutive days. A second closing of the Private Placement is contemplated whereby up to an additional 16,126,656 subscription receipts at a price per subscription receipt of $0.60 resulting in gross proceeds of up to $9,675,994 will be raised. The common shares of the Company are expected to remain halted from trading on the TSX-V until the second closing of the Private Placement.
On October 13, 2016, the Company advanced a mezzanine loan in the amount of $5.5 million to Musee Residences Corp. for the construction of the condominium project known as "Musee - King Adelaide West" in Toronto, Ontario. The loan bears interest at the rate of 10% per annum and matures on December 31, 2017. The Company will make other mezzanine loans as described in its management information circular dated August 23, 2016 in connection with the Proposed COB, subject to available funds and maintaining unallocated working capital thresholds. The TSX-V has conditionally approved the Proposed COB, subject to the completion and satisfaction of certain conditions.
On behalf of the Company, Sruli Weinreb, CEO
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