February X, 2022 – Zimtu Capital Corp. (TSXv: ZC) (FSE: ZCT1) (the “Company” or “Zimtu”) announces that it has completed its previously announced non-brokered private placement (the “Private Placement”), as described in its News Release dated January 10, 2022, pursuant to which it has issued an aggregate of 9,892,500 units (each, a “Unit”) at a price of $0.20 per Unit for gross proceeds of $1,978,500. Each Unit consists of one common share in the capital of the Company (each, a “Share”) and one non-transferable share purchase warrant (each, a “Warrant”). Each Warrant is exercisable into one additional Share at a price of $0.30 per Share for a period of two years from the closing date.
The Company paid cash finder’s fees of $3,600 to a certain finder and issued 18,000 share purchase warrants (the “Finder’s Warrants”) to one finder in connection with the Private Placement. Each Finder’s Warrant is exercisable into one Share at a price of $0.30 per Share for a period of two years from the date of issuance.
The securities issued under the Private Placement, and the shares that may be issuable on exercise of the Warrants, are subject to a statutory hold period expiring on June 16, 2022.
The Company intends to use the proceeds from the Private Placement for working capital in its company creation process.
A certain insider of the Company subscribed for a total of 125,000 Units under the Private Placement, which is a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuances to the insiders are exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company’s shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the securities issued to the related parties did not exceed 25% of the Company’s market capitalization.
About Zimtu Capital Corp.
Zimtu Capital Corp. is a public investment issuer that aspires to achieve long-term capital appreciation for its shareholders. Zimtu Capital companies may operate in the fields of mineral exploration, mining, technology, life sciences or investment. The Company trades on the TSX Venture Exchange under the symbol “ZC” and Frankfurt under symbol “ZCT1”. For more information, please visit https://www.zimtu.com.
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
President & Director
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