Kariana Closes $775,000 Subscription Receipt Financing
Vancouver, British Columbia, Canada, April 7, 2015, Kariana Resources Inc. (CSE: KAA) (“Kariana” or the “Company”) is pleased to announce that further to its press release of March 20, 2015, it has completed a non- brokered private placement (the “Financing”) of 5,168,757 subscription receipts (the “Subscription Receipts”) at a price of $0.15 per Subscription Receipt for gross proceeds of $775,314 on April 2, 2015. Each Subscription Receipt shall be automatically converted, without payment of any additional consideration, into one unit of Kariana (a “Unit”) upon the date (the “Escrow Release Date”) of satisfaction of certain escrow release conditions, including the completion of the previously announced acquisition of Canna Delivery Systems Inc. (the “Acquisition”). Each Unit is comprised of one (1) common share of Kariana (each a “Kariana Share”) and one half of one (1/2) common share purchase warrant (each a “Warrant”). Each whole Warrant will entitle the holder to purchase one additional Kariana Share at a price of $0.30 for the first year and $0.45 for the second year from the Escrow Release Date. The Warrants will expire 24 months from the Escrow Release Date.
In connection with the Financing, upon completion the Acquisition, and subject to the approval of the Canadian Securities Exchange, the Company intends to pay a finder’s fee equal to 8% of the number of Subscription Receipts purchased by purchasers under the Financing by the issuance of units (the “Finder’s Fee Unit”) that consists of one (1) Kariana Share and one half of one (1/2) common share purchase warrant (each a “Finder’s Fee Warrant”). Each Finder’s Fee Warrant will entitle the finder to purchase one additional Kariana Share at a price of $0.30 for the first year and $0.45 for the second year from the closing of the Financing. The deemed price of each Finder’s Fee Unit is equal to $0.15. The Finder’s Fee Warrants are non-transferable and will expire 24 months from the Escrow Release Date.
All securities issued in connection with the Financing will be subject to a four month hold period in accordance with applicable securities legislation. The Company intends to use the net proceeds of the Financing to fund the costs of the Acquisition and to fund the general working capital expenses of the resulting issuer.
On behalf of the board of directors of Kariana Resources Inc.
David Velisek CEO & Director
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The CSE has neither approved nor disapproved the information contained herein and does not accept responsibility for the adequacy or accuracy of this release.