FirstGrowth Capital Inc.

FirstGrowth Capital Inc.

March 15, 2007 09:20 ET

FirstGrowth Capital Inc. Announces Closing of First Tranche of Equity Financing for $3.2M

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 15, 2007) - FirstGrowth Capital Inc. (TSX VENTURE:FGC) has completed the first tranche of the brokered and non-brokered equity private placement financing for gross proceeds of $3,239,775 million (see news release dated February 8, 2007 and February 15, 2007). The TSX Venture Exchange issued its acceptance bulletin on March 6, 2007. The second tranche of the financing is expected to close shortly and proceeds from the financings will be used to purchase additional equipment and for working capital.

The first tranche financing consisted of 3,085,500 units at a purchase price of $1.05 per unit. Each unit consists of one share and one full share purchase warrant. One whole warrant will entitle the holder to purchase an additional share in the company at the price of $1.75 for 24 months. The units are subject to a four-month hold period following the closing.

Fees paid in accordance with this tranche of financing are as follows:

Agent: Canaccord Capital Corp.

Agent's fee: $153,720.00 and 146,400 share purchase warrants with the right to purchase 146,400 shares at an exercise price of $1.75 for a period of 24 months.

Agent: Ascenta Finance Corp.

Agent's fee: $71,071.88 and 67,688 share purchase warrants with the right to purchase 67,688 shares at an exercise price of $1.75 for a period of 24 months.

About FirstGrowth

FirstGrowth is an oil, gas and mineral exploration services company focused on the organic growth of its subsidiary, Kinetex Inc. In addition, FirstGrowth's goal is to make acquisitions in the resource services sector accretive to Kinetex's current seismic imaging services.

Kinetex has been a developer of advanced exploration techniques for over six years as a Calgary-based intergrator of applied sciences to the resource industry, including oil & gas exploration and development, and precious and base mineral exploration and evaluation. One of Kinetex's primary services is targeted implementation and optimization of seismic imaging using the proprietary VectorSeis Recording System and Digital 3 Component Full Wave Imaging.

Kinetex continues to be focused on offering value added services which accelerate the advancement of both gross roots exploration and development of hard rock deposits, with extensive experience in the areas of diamonds, gold and uranium.


Gilbert Schneider, President

The company seeks safe harbour.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • FirstGrowth Capital Inc.
    Gil Schneider
    (604) 484-5761
    Ascenta Capital Partners Inc.
    Bruce Korhonen
    Investor Relations
    (604) 684-4743 ext. 230