Tickers: XTSE:ZZE.H, XTSX:ZZE.H
Tags: #CapitalPoolCompany
November 4, 2019 - TheNewswire - Vancouver, British Columbia - Zidane Capital Corp. (TSXV:ZZE.H) ("Zidane"), a capital pool company pursuant to TSX Venture Exchange Policy 2.4 - Capital Pool Companies (the "CPC Policy"), announces that Zidane's Board of Directors has approved to consolidate its issued share capital on a ratio of one (1) new post-consolidated common share for every two (2) old pre-consolidated common shares (the "Consolidation"). Zidane currently has 2,450,552 issued and outstanding common shares and on completion of the Consolidation there will be 1,225,276 issued and outstanding common shares.
The Consolidation will not change a shareholder's proportionate ownership in Zidane or the rights of holders of its common shares. Each common share outstanding after the Consolidation will be entitled to one vote and will be fully paid and non-assessable.
Any fractional common share resulting from the Consolidation that is less than one-half of one common share will be cancelled, and each fractional common share that is at least one-half of one common share will be changed to one whole common share.
The Board of Directors determined the Consolidation is necessary in order for Zidane to raise additional capital. Zidane is also pleased to announce that it intends to complete a non-brokered private placement (the "Private Placement") for total gross proceeds of up to $200,000. The Private Placement will consist of up to 4,000,000 post-Consolidation common shares at a price of $0.05 per share. Proceeds of the Private Placement will be used to pay outstanding debt and for general working capital.
It is anticipated that insiders who are control persons of Zidane will subscribe for shares in the Private Placement at an amount to be determined. The issuances of shares to insiders pursuant to the Private Placement will also be considered related party transactions within the meaning of TSX Venture Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Zidane intends to rely on exemptions from the formal valuation and minority approval requirements MI 61-101 in respect of such insider participation.
The Consolidation and Private Placement are subject to the acceptance of the TSX Venture Exchange.
Further Information
For further information, please contact:
Casper Bych, Chief Executive Officer, Zidane Capital Corp.
Telephone: 604.417.6375
Email: casper@mvcap.ca
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