CALGARY, ALBERTA -- (Marketwire) -- 02/27/13 -- Giga Capital Corporation (the "Corporation") - (TSX VENTURE: GIG.H), a capital pool company trading on the NEX board of the TSX Venture Exchange (the "TSXV"), announces that the TSXV has concluded a compliance review of the Corporation and has determined that the Corporation has contravened section 8.4 of TSXV Policy 2.4 (the "70/30 Rule") which provides that until completion of a Qualifying Transaction, no more than the lesser of 30% of the gross proceeds from the sale of securities issued by a CPC and $210,000 may be used for purposes other than for the location and completion of a Qualifying Transaction. While the Corporation has breached the 70/30 Rule, none of these expenses were prohibited per TSXV Policy 2.4.
At the request of the TSXV, the Board of Directors has implemented an internal control policy to ensure that the 70/30 Rule will not be contravened in connection with the gross proceeds generated from any future sale of securities while the Corporation remains a CPC.
The Corporation intends to continue to identify and evaluate businesses or assets with a view to completing a Qualifying Transaction pursuant to the policies of the TSXV. Any potential transaction will be subject to the approval of the TSXV and there is no assurance that a Qualifying Transaction will be completed. As at January 31, 2013, the Corporation has a cash position of $6,496 and a working capital deficiency of $100,524. The Corporation will need to complete additional financing to sustain operations.
The Common Shares of the Corporation are expected to resume trading on NEX at the open of trading on March 1, 2013.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (as that term is defined in the Policies of the TSX Venture Exchange) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Giga Capital Corporation
Frank B. Boyd
President and Chief Executive Officer
(403) 716-2230
