LETHBRIDGE, ALBERTA--(Marketwire - July 17, 2012) - 1611985 Alberta Ltd. ("1611985" or the "Corporation") announced today that the Corporation has completed the first tranche closing of a non-brokered private placement offering of common shares at a price of $0.25 per common share. The Corporation issued a total of 320,000 common shares for aggregate proceeds of $80,000 in this first tranche. The first tranche closing is part of a larger private placement offering by the Corporation (the "Offering") of up to 1,200,000 common shares for aggregate gross proceeds of up to $300,000, to be completed in multiple tranches. A finder's fee of up to 10% of the gross proceeds of the Offering may be paid in cash on all or any part of the Offering. Additionally, finder's warrants exercisable into common shares of the Corporation may be issued in an amount up to 10% of the number of common shares sold under the Offering by any particular finder. The finder's warrants will be exercisable into common shares at a price of $0.25 per common share for a period of one year from the date of issuance of the finder's warrants.
All securities issued in connection with this first tranche closing are subject to a hold period expiring on November 18, 2012. The net proceeds from the Offering will be used for general working capital purposes.
No new insiders were created, nor has any change of control occurred, as a result of this first tranche closing. There were no finder's fees or finder's warrants paid by the Corporation in this first tranche closing.
This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.