Montreal, Quebec--(Newsfile Corp. - March 18, 2014) - Global SeaFarms Corporation (CSE: GSF) ("GSF" or the "Company") announces that it intends to complete a private placement of unsecured convertible debentures (the "Convertible Debentures") for an expected amount of up to $1,300,000.
The Convertible Debentures will mature on March 31, 2016 at 5 p.m. (Montréal time) (the "Maturity Date"). The Convertible Debentures will be convertible, at the holder's option, into Class A shares of the Company at any time prior to the Maturity Date. The conversion price will be $0.15 per share. The Convertible Debentures shall bear interest at a rate of 18% per annum payable from April 30, 2014, on a monthly basis, in cash. The Convertible Debentures are redeemable by the Company at any time after March 31, 2015.
The proceeds from the offering will be used to expand its farming operations in the Dominican Republic and for working capital and general corporate purposes.
The Convertible Debentures and underlying class A shares issued pursuant to the conversion of the Convertible Debentures will be subject to a statutory resale restriction period.
This news release shall not constitute an offer to sell, nor the solicitation of an offer to buy, nor shall there be any securities of GSF offered in any jurisdiction in which such an offer, solicitation or sale would be unlawful. The offering will be made on a private placement basis and only to "accredited investors", as such term is defined under applicable Canadian securities laws.
THE SECURITIES WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE "1933 ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.
About Global SeaFarms
GSF is a fully integrated fish farming operation with a commercial hatchery, farm and processing facility in the Dominican Republic. GSF is engaged in the identification and development of high-potential aquaculture projects in the Americas. GSF has two vectors to its growth strategy - warm water opportunities in the region of the Caribbean Sea and cold water opportunities in North America. GSF is currently expanding its warm water platform operation in the Dominican Republic and ramping up production of Florida Pompano for the U.S. seafood market. No regulatory authority has reviewed this press release nor have they approved nor disapproved the contents of this news release.
Forward Looking Statements
Certain statements included in this News Release contain forward-looking statements, including disclosure concerning possible or assumed future results of operations of the Company. Forward-looking statements typically are preceded by, followed by or include the words - "believes", "expects", "anticipates", "estimates", "intends", "plans", or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions, and the Company's results could differ materially from those anticipated in these forward-looking statements. Neither CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of the release.
For further information, please contact:
| Robert Boisjoli | Cameron McDonald |
| Global SeaFarms Corporation | Global SeaFarms Corporation |
| Tel: 514-821-9857 | Tel: 514-825-0007 |
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
