Stratton Capital Corp.

March 06, 2012 16:42 ET

Stratton Capital Corp. Announces Closing of Initial Public Offering

TORONTO, ONTARIO--(Marketwire - March 6, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Stratton Capital Corp. (the "Company") is pleased to announce that it has completed its initial public offering through its agent, Haywood Securities Inc. ("Haywood"), of 3,029,250 common shares of the Company at a price of $0.10 per common share for total gross proceeds of $302,925 pursuant to a prospectus dated December 15, 2011 filed with the British Columbia, Alberta and Ontario securities commissions.

The Company has received final acceptance to be listed as a capital pool company on the TSX Venture Exchange (the "TSXV"). The common shares of the Company are expected to commence trading on Tier 2 of the TSXV at the opening of market on March 8, 2012 under the trading symbol "SNK.P".

As consideration for its role as agent, the Company granted to Haywood a non-transferable warrant (the "Agent's Warrants") to purchase up to 302,925 common shares of the Company at a price of $0.10 per common share for a period of 24 months from the date the Company's common shares are listed on the TSXV. In addition, Haywood received a cash commission in an amount equal to 10% of the gross proceeds of the initial public offering, a corporate finance fee of $10,000 and reimbursement of certain expenses.

Upon closing of the initial public offering, the Company also granted 795,325 incentive stock options to its directors and officers which are exercisable for a period of five years at an exercise price of $0.10 per share.

As a result of the closing of the initial public offering, the Company now has 7,953,251 common shares issued and outstanding (4,924,001 of which are subject to escrow restrictions in accordance with TSXV policies), 302,925 reserved for issuance upon the exercise of the Agent's Warrant and 795,325 common shares reserved for issuance upon the exercise of incentive stock options. The escrowed shares will be released in staged releases over a period of 36 months.

The Company's board of directors and management team is comprised of: David Subotic (Director, President and Chief Executive Officer), Raphael Danon (Chief Financial Officer), John Zorbas (Director) and Philip Williams (Director).

About the Company

The Company is designated as a Capital Pool Company by the TSXV. The Company has not commenced commercial operations and has no assets other than cash. The only business of the Company is the identification and evaluation of assets or businesses with a view to completing a "Qualifying Transaction" in accordance with TSXV Policy 2.4 - Capital Pool Companies. The funds raised under the initial public offering will be used to pursue such Qualifying Transaction. For further information regarding the Company, the offering, and the Company's management team, see the prospectus filed with the Company's disclosure documents on SEDAR at www.sedar.com.

The information in this news release includes certain statements about management's view of future events, expectations, plans and prospects, including, among others, expectation of use of funds, that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although Stratton Capital Corp. believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, Stratton Capital Corp. disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

This press release does not constitute and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any "U.S Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of Stratton Capital Corp. The securities of Stratton Capital Corp have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information