U.S. Canadian Minerals, Inc. Secures Funding Transaction
Business Wire - August 20, 2004 06:00
LAS VEGAS, Aug 20, 2004 (BUSINESS WIRE) -- U.S. Canadian Minerals, Inc. (OTCBB:UCAD) announced today that it has signed an agreement with a private investment company to engage in a transaction for the funding of the Company. The Agreement calls for the purchase, by the investment company, of U.S. Canadian Minerals, Inc. common shares, valued at the time of the closing at $9,005,355 USD, in exchange for shares of the investment company.
The investment company is a newly formed London-based entity that will apply for its shares to be admitted to trading on the London stock exchange as an investment trust. The investment company has been established specifically to invest in US micro cap companies with long term growth potential. The investment company expects its shares to be trading on the London Stock Exchange by September 30, 2004.
The investment company has entered into a "lock-up" agreement with U.S. Canadian Minerals, Inc. pursuant to which it has agreed not to trade U.S. Canadian Minerals, Inc. shares it will receive as a result of this transaction for a period of two years from the closing date. In full payment for the shares of U.S. Canadian Minerals, Inc., the investment company will issue to U.S. Canadian Minerals, Inc. $9,005,355 USD equivalent of its shares at a price per share valued at One Pound Sterling.
Fifty percent of the investment company's shares issued to U.S. Canadian Minerals, Inc. will be held in escrow for two years following their issuance and in the event the per share market price of U.S. Canadian Minerals, Inc. common stock at such time is less than the per share value of U.S. Canadian Minerals, Inc. stock at the time of the closing, the investment company shall be entitled to the return out of escrow a percentage of the investment company's shares equal to the market value of such decline. The remaining shares held in escrow shall be released to U.S. Canadian Minerals, Inc. at the time of any such release back to the investment company. The closing of this transaction is subject to certain contingencies, including the listing of the investment company shares on the London Stock Exchange on or before September 30, 2004.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained in this document which are not historical fact are forward-looking statements based upon management's current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements.
SOURCE: U.S. Canadian Minerals, Inc.
U.S. Canadian Minerals, Inc.
Chris Hanneman, 303-220-8476
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