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TORONTO, ON --(Marketwired - March 28, 2016) - Keek (TSX VENTURE: KEK) (OTCQX: KEEKF) today announced that further to its press releases dated March 14, 2016, and March 21, 2016, it has closed the final tranche of its non-brokered private placement originally announced January 21, 2016. The Company issued an aggregate of 6,000,000 units at a price of $0.25 per unit, including 1,034,000 units issued to insiders of the Company, for total gross proceeds from this private placement of $1,500,000.
Each unit is comprised of one common share and one common share purchase warrant of Keek. Each warrant entitles the holder to purchase one common share of the company, at a price of $0.30 per share for a period of 12 months. The common shares issued pursuant to the private placement bear a 4 month hold period. The private placement proceeds will be used by Keek for the implementation of the licensing agreement with Personas.com Corporation, as well as for general corporate purposes. The Company paid aggregate finders fees of $23,475 to arm's length parties in relation to this private placement.
As a result of the completion of the private placement, the remaining $3,010,000 principal amount of 7% secured convertible notes due March 1, 2017, ($3,000,000 of which were held by Riavera Corp. ("Riavera"), a company controlled by Mark Itwaru, Chairman and Chief Executive Officer), as well as all accrued interest, automatically converted according to its terms, into common shares of Keek at a price of $0.25 per share. Principal and interest accrued on the notes to March 24, 2016, equaled $3,459,517 and resulted in the issuance by Keek of 13,838,067 common shares (of which, 13,792,333 were issued to Riavera). The common shares are subject to a four month hold period from the date of issue.
Following receipt of shareholder approval for the creation of a new control person on March 11, 2016, as a result of the conversion of the note held by Riavera and following the private placement, Mark Itwaru, Chairman and Chief Executive Officer, has control and direction over an aggregate of 17,826,333 common shares (representing 40.0% of Keek's outstanding common shares on an undiluted basis), 4,034,000 warrants to acquire common shares and 300,000 options to acquire common shares, representing in aggregate 45.4% of the outstanding common shares of Keek on a partially diluted basis. Neither Keek, nor to the knowledge of Keek after reasonable inquiry, Mr. Itwaru, have knowledge of any material information concerning Keek or its securities that has not been generally disclosed.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.
For further information, please contact:
Chairman & Chief Executive Officer