FirstGrowth Capital Inc.
TSX VENTURE : FGC
FRANKFURT : G8Q

FirstGrowth Capital Inc.

April 19, 2007 08:30 ET

FirstGrowth Capital Inc. Announces Closing of Second and Final Tranche of Convertible Debenture Financing Totaling $2.7M

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 19, 2007) - FirstGrowth Capital Inc. (TSX VENTURE:FGC)(FRANKFURT:G8Q) has completed the second and final tranche of the non-brokered convertible debenture private placement financing for total gross proceeds of $2.7 million (see news releases dated Feb. 8, 2007 and February 17, 2007). The TSX Venture Exchange issued its acceptance bulletins for the first tranche on Feb. 9, 2007 and the second tranche on April 17, 2007.

Over the past fifteen months the company has raised over $12 million dollars, including $9.1 million to date in 2007. Proceeds from the financings have been used to purchase additional equipment and for working capital.

Terms of the debenture

The non-brokered convertible debenture private placement consists of 2.7 million units of the company at a price of $1.00 per unit, each unit consisting of one transferable debenture and one-half of one share purchase warrant. One whole warrant entitles the holder to purchase an additional share in the company at the price of $1.75; terms are described below.

The debenture will mature on the expiry of four years from the date of issuance by the issuer. The interest rate will be 10 per cent per year, payable quarterly, in arrears, on each of March 31, June 30, Sept. 30 and Dec. 31 of each year. The principal amount of the debenture will be convertible at the election of the holder into units of the issuer at the price of $1.25 per debenture unit during the first year of the debenture, at a price of $1.40 per debenture unit during the second year of the debenture, at a price of $1.55 per debenture unit during the third year of the debenture and at the price of $1.75 per debenture unit during the fourth year of the debenture, with each such debenture unit comprising one common share in the capital of the issuer and one-half of one transferable share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share of the issuer at a price of $1.75 for a period ending the earlier of: two years from the issuance of the warrant; and the last business day prior to the expiry date of the debenture. The debenture may be redeemed at the option of the issuer at any time following the second year from the date of issuance of the debenture, provided that the issuer will have given the holder of the debenture not less than three months prior written notice of its intention to redeem; and the holder of the debenture may cause the issuer to retract the debenture at any time following the second year from the date of issuance of the debenture, provided that the holder of the debenture will have given the issuer not less than three months prior written notice of the holder's intention to cause the issuer to retract the debenture and provided that such retraction notice will terminate the holder's right to convert the debenture into debenture units following the date such retraction notice is given to the issuer.

The expiry date of the hold period is August 18, 2007.

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 integrator 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 grass roots exploration and development of hard rock deposits, with extensive experience in the areas of diamonds, gold and uranium.

FIRSTGROWTH CAPITAL INC.

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
    Website: www.firstgrowthcapital.ca
    or
    Ascenta Capital Partners Inc.
    Bruce Korhonen
    Investor Relations
    (604) 684-4743 ext. 230