Karel Capital Corporation

June 26, 2008 18:18 ET

Karel Capital Corporation Completes $800,000 Initial Public Offering

CALGARY, ALBERTA--(Marketwire - June 26, 2008) - Karel Capital Corporation (the "Company"), a capital pool company, is pleased to announce that on June 26, 2008, it completed its initial public offering ("Offering") of 8,000,000 common shares at a price of $0.10 per share for gross proceeds to the Company of $800,000.

PI Financial Corp. ("PI Financial") acted as agent for the Offering. In connection with the Offering, PI Financial received a cash commission of 10% of the gross proceeds of the Offering, a corporate finance fee and the Company granted to the agent a non-transferable compensation option to purchase up to an aggregate of 800,000 common shares at a price of $0.10 per share exercisable for a period of 24 months from the date the Company's common shares are listed on the TSX Venture Exchange (the "Exchange").

The Company's common shares have been conditionally approved for listing on the Exchange. Subject to filing final materials with the Exchange, the Company expects its common shares to commence trading in early July 2008 under the symbol KRL.P.

The net proceeds of the Offering will be used to identify and evaluate assets of businesses for acquisition with a view to completing a "Qualifying Transaction" under the Capital Pool Company program of the Exchange as disclosed in the Company's prospectus dated June 11, 2008.

At the closing of the Offering, the Company also granted stock options to its directors and officers to acquire an aggregate of 950,000 common shares at a price of $0.10 per share exercisable until June 26, 2013.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in the Company's filings with the Canadian securities regulators, which filings are available at www.sedar.com.

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

Contact Information

  • Karel Capital Corporation
    Cameron Schuler
    President and Chief Executive Officer
    (780) 238-6740
    (780) 444-0064 (FAX)
    Email: cameron@karelcapitalcorp.com