LAVAL,
QC, Jan. 30, 2024 /CNW/ - Geekco
Technologies Corporation (the "Corporation" or
"Geekco") (TSXV: GKO) (OTCQB: GKOTF) is pleased to announce
the closing of a non-brokered private placement of units at a price
of $0.035 each (each a "Unit")
for a gross proceeds of $700,000 (the
"Private Placement"). Each Unit consists of one (1) Class A
share of the share capital of the Corporation (each a "Common
Share") and one (1) warrant (each a "Warrant"). Each
Warrant entitles the holder to acquire one (1) additional Common
Share at a price of $0.05 until three
(3) years from their issuance date.
The Corporation will use the proceeds from the Private Placement
approximatively as follow: 21% for payments to non-arm's length
parties of the Corporation, 33% to various creditors and 46% for
the improvement of the working capital.
In connection with the Private Placement, the Corporation paid
finders' fees for a total of $2,450
in cash and 70,000 intermediary warrants having the same terms as
the Warrants included in the Units to finders which were all at
arms' length with the Corporation.
All securities issued within the Private Placement are subject
to a four-month and one-day resale restriction period from the
closing date of the Private Placement. The Private placement is
subject to the final TSX Venture Exchange approval and any other
applicable regulatory approvals.
Multilateral Instrument 61-101
Under the Private Placement, André Godin, Chairman of the Board
of the Corporation, subscribed directly to 1,100,714 Units for a
gross proceeds of $38,525. His
previous shareholding on an undiluted and diluted basis was at
0.40% (increases to 2.18% on an undiluted basis and to 4.01% on a
partly diluted basis, after closing of the Private Placement).
Also, Xavier Harland, Chief
Financial Officer of the Corporation, subscribed directly to
5,000,000 Units for a gross proceeds of $175,000. His previous shareholding on an
undiluted was at 5.28% (5.53% on a partly diluted basis) (increases
to 12.14% on an undiluted basis and to 19.30% on a partly diluted
basis, after closing of the Private Placement). Such transactions
are "related party transactions" as defined under Multilateral
Instrument ("MI 61-101"). The transaction is exempt from the
formal valuation and minority shareholder approval requirements of
MI 61-101 as the Corporation is listed on the TSX Venture Exchange
and the fair market value of any security issued to, or the
consideration paid, does not exceed 25% of the Corporation's market
capitalization. The Corporation did not file a material change
report pertaining to the insider's interest more than 21 days
before the closing of the Offering, as the details of this
insider's participation had not been confirmed at that time. The
board members of the Corporation unanimously, but excluding André
Godin, reviewed the state of the financial market and determined
that the terms and conditions of the Private Placement, including
the subscription of the related party, were fair and equitable and
represented the best strategic financing option available. In
addition, neither the Corporation nor the said related party has
knowledge of any material information concerning the Corporation or
its securities that has not been generally disclosed.
ABOUT GEEKCO
Geekco is positioned at the forefront of technological solutions
that are evolving the new way of doing marketing while stimulating
and energizing the economy of each city and each neighborhood by
making consumers and shops interact like never before. Its FlipNpik
application allows users to discover businesses around them in real
time using the interactive map, access exclusive rewards and even
find a job. Shops thus increase their traffic and their visibility
while recruiting their future employees. All this in the same
app.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Geekco Technologies inc