TORONTO, June 29, 2021 (GLOBE NEWSWIRE) -- Savanna Capital Corp. (“Savanna” or the “Company”), a capital pool company as defined under Policy 2.4 – Capital Pool Companies (the “Policy”) of the TSX Venture Exchange (the “Exchange”), announces that the Company has received the approval of the majority of the disinterested shareholders (the "Shareholders") to implement certain amendments to align with the Exchange’s recently announced changes to its Capital Pool Company ("CPC") Program and Exchange Policy 2.4 - Capital Pool Companies, effective as of January 1, 2021 (the "New CPC Policy").
The Shareholders, by written consent, granted approval to: (i) remove the consequences of failing to complete a Qualifying Transaction (as defined in the New CPC Policy) within 24 months of the Company's date of listing on the Exchange; (ii) amend the escrow release conditions and certain other provisions of the Company's CPC escrow agreement dated October 6, 2017 and (iii) permit the payment of finder’s fee or commission to a Non-Arm’s Length Party to the Company upon completion of a Qualifying Transaction. As such, upon receiving final approval from the Exchange, the Company will operate under the parameters of the New CPC Policy.
Under the New CPC Policy, the Company is permitted to implement certain other changes without obtaining shareholder approval. As a result, the Company wishes to have the option to take advantage of all the changes under the New CPC Policy that do not require shareholder approval, which became effective on January 1, 2021, including, but not limited to:
a) increasing the maximum aggregate gross proceeds to the treasury that the Company can raise from the issuance of common shares (the “Share”) in the IPO, seed shares and private placement to the new maximum of $10,000,000, rather than $5,000,000;
b) removing the restriction which provided that no more than the lesser of 30% of the gross proceeds from the sale of securities issued by the Company and $210,000 may be used for purposes other than identifying and evaluating assets or businesses and obtaining shareholder approval for a proposed Qualifying Transaction, and implementing the restrictions on the permitted use of proceeds and prohibited payments under the New CPC Policy, under which reasonable general and administrative expenses not exceeding $3,000 per month are permitted;
c) removing the restriction on the Company issuing new agent's options in connection with a private placement; and
d) removing the restriction such that now one person has the ability to act as the chief executive officer, chief financial officer and corporate secretary of the Company at the same time.
Savanna is a Capital Pool Company (as defined in the policies of the Exchange) listed on the Exchange. Savanna has no material liabilities, approximately $60,000 in cash, 4,600,000 common shares and 460,000 options issued and outstanding.
For further information, please contact:
Savanna Capital Corp.
Tel: (416) 861-2267
Certain statements in this release are forward-looking. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, as well as other factors beyond the Company's control. The Company does not undertake to update any forward looking information, except in accordance with applicable securities laws.
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