Lancaster Sierra Capital Corp.

September 23, 2005 20:19 ET

Lancaster Sierra Capital Corp. Completes Capital Pool Company Initial Public Offering

TORONTO, ONTARIO--(CCNMatthews - Sept. 23, 2005) - Lancaster Sierra Capital Corp., a capital pool company, announced today that is has completed its initial public offering by issuing 1,400,000 common shares at a price of $0.25 per share, for gross proceeds to the Corporation of $350,000.

The common shares of the Corporation are scheduled to commence trading on the TSX Venture Exchange on September 28, 2005 under the trading symbol of "LSR.P".

The net proceeds of the offering will be used by the Corporation to identify and evaluate assets or businesses for acquisition with a view to completing a "Qualifying Transaction" under the capital pool company program of the TSX Venture Exchange.

Raymond James Ltd. acted as agent for the offering. In connection with the offering, the agent received an aggregate commission equal to 10% of the aggregate gross proceeds of the sale of the common shares. In addition, the Corporation granted to the agent a non-transferable option to purchase up to 140,000 common shares at a price of $0.25 per common share. The options expire 24 months from the date the Corporation's shares are listed on the TSX Venture Exchange.

All 1,040,000 previously issued and outstanding shares of the Corporation were placed in escrow in accordance with the policies of the Exchange. The shares are held by the Corporation's directors and officers and were issued at a price of $0.125 per share for an aggregate purchase price of $130,000. Upon completion of the offering, the Corporation granted a total of 244,000 to its officers and directors, subject to regulatory approval. Each of the options is exercisable at a price of $0.25 per common share until September 21, 2010.

The directors and officers of the Corporation are Brian Courtney, Director, President and Chief Executive Officer; Glenn MacNeil, Director and Chief Financial Officer; Dalton Albrecht, Secretary; Paul Sullivan, Director; and David Woolford, Director.

For additional information, please see the Prospectus of the Corporation dated June 26, 2005 or contact: Brian Courtney, President and Chief Executive Officer at Tel: (905) 842-8543; Fax: (905) 842-8238.

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

Contact Information

  • Lancaster Sierra Capital Corp.
    Brian Courtney
    President and Chief Executive Officer
    (905) 842-8543
    (905) 842-8238 (FAX)