|November 14, 2017|
Reservoir Announces Private Placement, Completion of Debt Settlement, and Conversion of Loan Agreement
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Vancouver, British Columbia (TSX Venture: REO) - Reservoir Capital Corp. ("Reservoir" or the "Company") intends to undertake a private placement to raise up to $1,200,000 through the issue of up to 24,000,000 common shares at $0.05 per share (the "Offering"). The Company will pay 2% finder's fees in cash in respect of subscriptions from investors introduced by eligible finders. There can be no assurance that the Offering will be completed as proposed or at all, and it is subject to TSX Venture Exchange ("TSXV") approval. The Company intends to use the net proceeds of the Offering for general corporate and working capital purposes.
The Company also announces that it has amended the terms of its previously announced shares for debt transaction in order to satisfy TSXV requirements. Rather than receiving 10,745,080 common shares as initially proposed, creditors of the Company were issued 8,102,880 common shares at a price of $0.05 each . Furthermore, simultaneous with the closing of the debt settlement, the Company has, pursuant to the unsecured loan agreement entered into on June 7, 2017 (the "Loan Agreement"), partially converted $140,000 of the $200,000 loan into 2,800,000 units. Each unit consisted of one common share and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable to acquire one common share for one year from issuance at an exercise price of $0.05. For further details regarding the shares for debt transaction and Loan Agreement, please see news release dated June 9, 2017 available at www.sedar.com).
The shares issued in the debt settlement and loan conversion, including shares issuable on exercise of the Warrants, are subject to restrictions on transfer expiring on March 11, 2018. Currently, following closing of the debt settlement and loan conversion but prior to any share issuance related to the Offering, the Company has 26,714,424 shares outstanding.
Reservoir is a renewable energy company engaged in the development of hydroelectric projects in Serbia and other eastern European jurisdictions. Reservoir's common shares trade on the TSX Venture Exchange (symbol "REO").
For further information on Reservoir Capital Corp., please consult the Company's website www.reservoircapitalcorp.com.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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