Forte Group Announces Non-Brokered Private Placement
Rhea-AI Summary
Forte Group Holdings (CSE:FGH, OTC:FGHFF) has announced a non-brokered private placement financing, planning to issue 625,000 common shares at $0.60 per share to raise aggregate gross proceeds of up to $375,000. The shares will have a statutory hold period of four months and one day from issuance.
The company plans to use the proceeds for general working capital and outstanding payables. The closing is expected around February 3, 2025. Company insiders may participate in the placement, which falls under MI 61-101 regulations, with exemptions from formal valuation and minority shareholder approval requirements as insider participation won't exceed 25% of market capitalization. No finder's fees are associated with this placement.
Positive
- Raising $375,000 in additional capital
- No finder's fees required, reducing transaction costs
Negative
- Potential dilution of existing shareholders through new share issuance
- Funds primarily for working capital and payables rather than growth initiatives
- Share price set at $0.60 may represent a discount to market price
News Market Reaction – FGHFF
On the day this news was published, FGHFF gained 15.38%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BRITISH COLUMBIA / ACCESS Newswire / January 24, 2025 / Forte Group Holdings Inc. (CSE:FGH) (OTC:FGHFF) (FSE:7BC0, WKN:A40L1Z) ("Forte Group" or the "Company"), a diversified lifestyle and wellness consumer packaged goods company, announces that, announces a non-brokered private placement financing (the "Private Placement"), consisting of the issuance of an aggregate of 625,000 common shares of the Company (the "Shares"), at a price of
The Company intends to use the proceeds of the Private Placement for general working capital and outstanding payables. Closing of the Private Placement is anticipated to occur on or about February 3, 2025.
Insiders may participate in the Private Placement and will be considered a related party transaction subject to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under subsections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Private Placement by insiders will not exceed
This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act.
About Forte Group Holdings Inc.
Forte Group Holdings Inc. (CSE:FGH)(OTC:FGHFF)(FSE:7BC0, WKN:A40L1Z) is a diversified lifestyle and wellness consumer packaged goods company. Forte Group develops and manufactures a range of alkaline and mineral-enriched beverages and nutraceutical supplements for both its TRACE brand and private-label clients. Based in British Columbia, Canada, Forte Group owns a pristine natural alkaline spring water aquifer and operates a 40,000-square-foot, Health Canada and HACCP-certified manufacturing facility near Osoyoos, British Columbia. The Company's distribution network includes traditional retail and e-commerce channels, delivering wellness-focused products directly to consumers through its innovative offerings.
On behalf of the Board of Directors:
John Campbell,
Chief Financial Officer and Chief Strategy Officer, Director
john@fortegroup.co
604-569-1414
Disclaimer for Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, but are not limited to, the Company's expectations regarding the timing and completion of the Private Placement, the use of proceeds from the Private Placement for general working capital and outstanding payables, and the anticipated participation by insiders in the Private Placement. Forward-looking statements reflect management's current beliefs, expectations, and assumptions as of the date of this release and are subject to significant risks, uncertainties, and other factors that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: the ability to complete the Private Placement in a timely manner or at all; changes in regulatory requirements and approvals; market and economic conditions; consumer demand for the Company's products; the Company's ability to generate sufficient revenue to meet financial obligations; risks associated with securing and maintaining financing; competition within the industry; and supply chain disruptions. Additionally, there are risks related to insider participation in the Private Placement and the Company's reliance on exemptions under Multilateral Instrument 61-101. The Company makes no assurance that the forward-looking statements will prove to be accurate and disclaims any obligation to update or revise these statements, whether as a result of new information, future events, or otherwise, except as required by law. For a more detailed discussion of these risks and other potential factors, please refer to the Company's public filings available on SEDAR+.
SOURCE: Forte Group Holdings
View the original press release on ACCESS Newswire
FAQ
How much is Forte Group (FGHFF) raising in their January 2024 private placement?
When will the FGHFF private placement shares be free trading?
What will Forte Group (FGHFF) use the private placement proceeds for?
When is the expected closing date for Forte Group's private placement?
Can insiders participate in Forte Group's (FGHFF) private placement?
