Vancouver, British Columbia–(9-FIGURE MEDIA) – Mantra 2 Real Estate Inc. (the “Company”) is pleased to announce that it has closed its non-brokered private placement for gross proceeds of $143,750.00 through the sale of 2,875,000 units of the Company (“Units“) at a price of $0.05 per Unit (the “Private Placement“). Each Unit is comprised of one common share of the Company (a “Share“) and one common share purchase warrant (each, a “Warrant“). Each Warrant entitles the holder to purchase an additional Share at a price of $0.05 per Share for a period of five years.
The proceeds from the sale of the Units are intended to be used to settle certain outstanding indebtedness of the Company and for general working capital purposes. No finders fees were issued under the Private Placement.
All securities issued pursuant to the Private Placement will be subject to a four month hold period from the date of issue.
Multilateral Instrument 61-101
Under the Private Placement, the following insiders of the Company purchased Units: Henry Park, a director of the Company, purchased 500,000 Units through a company controlled by Mr. Park; and Rajinder Chowdhry, President, CEO and a director of the Company, purchased 1,850,000 Units. Their participation is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101“). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the Private Placement nor the consideration to be received for those securities, in so far as the Private Placement involves the insiders, exceeds 25% of the Company’s market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the Private Placement as the details of the Private Placement and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.
Early Warning Disclosure
Rajinder Chowdhry acquired ownership of 1,850,000 Units under the Private Placement. Prior to the Private Placement, Rajinder Chowdhry held 22,199,332 Shares, which represented approximately 48.81% of the issued and outstanding Shares of the Company. After giving effect to the Private Placement Rajinder Chowdhry beneficially owns and controls a total of 24,049,332 Shares. These securities represent 49.73% of the Company’s issued and outstanding Shares on a non-diluted basis or 51.71% of the Company’s issued and outstanding Shares on a partially diluted basis assuming exercise of Rajinder Chowdhry’s Warrants only. Rajinder Chowdhry acquired the Units for investment purposes. Rajinder Chowdhry intends to evaluate his investment in the Company and to increase or decrease his shareholdings from time to time as he may determine appropriate. A copy of the early warning report being filed by Rajinder Chowdhry may be found on the Company’s SEDAR profile at www.sedar.com.
For more information please email [email protected]
Mantra 2 Real Estate Inc.
Raj Chowdhry, Chief Executive Officer
Email: [email protected]