Red River Capital Corp. closed its initial public offering of 3 million of its common shares at a price of 10 Canadian cents per share for gross proceeds of C$300,000.
The capital pool company plans to use the net proceeds from the offering to identify and evaluate assets or businesses for acquisition.
Canaccord Genuity Corp. acted as the agent for the offering.
In connection with the IPO, Red River granted the agent warrants which entitle the agent to purchase up to 300,000 common shares at an exercise price of 10 cents per share. The warrants will expire 24 months from the date the shares are listed on the TSX Venture Exchange which is July 25.
Concurrent with the closing of the offering, Red River also granted options to acquire an aggregate of 550,000 common shares at an exercise price of 10 cents per share to the directors and officers of the company, which options expire five years from the date of grant.
Following the completion of the IPO, Red River now has 5.5 million shares issued and outstanding.