Prelim Capital Inc.

August 23, 2007 14:45 ET

Prelim Capital Closes IPO, Lists on TSX Venture Exchange

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2007) - Prelim Capital Inc., a capital pool company, is pleased to announce that it has completed its initial public offering of shares in Ontario, Alberta and British Columbia by issuing 1,700,000 common shares at a price of $0.30 per share for gross proceeds to the Corporation of $510,000.

The common shares of the Company will begin trading on the TSX Venture Exchange on Friday, August 24, 2007, under the trading symbol "PLM.P". (TSX VENTURE:PLM.P)

The net proceeds of the offering will be used by the Company 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 Exchange.

Blackmont Capital Inc. acted as agent for the offering. In connection with the offering, the Corporation granted to the agent non-transferable options to acquire up to an aggregate of 170,000 common shares at a price of $0.30 per share. The options may be exercised until August 24, 2009. The agent also received an aggregate cash commission equal to 10% of the aggregate gross proceeds of the sale of the common shares.

At the closing of the offering, the Company also granted stock options to its directors and officers in respect of an aggregate of 240,000 common shares. The options may be exercised until August 22, 2012, at the price of $0.30 per share.

All 700,000 previously issued and outstanding shares of the Company were placed in escrow in accordance with the policies of the Exchange. The shares are held by the Company's directors and officers and were issued at a price of $0.15 per share for an aggregate purchase price of $105,000.

The current directors and officers of the Company are: James S. Borland, President, Chief Executive Officer and Director; Joseph Lebovics, Chief Financial Officer and Director; John Armstrong, Director; Elaine Ellingham, Director; Ryan Johnson, Director; and William R. Johnstone, Corporate Secretary.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Prelim Capital Inc.
    Jim Borland
    President
    (416) 214-5858
    (416) 364-7711 (FAX)
    Email: info@straitgold.com