CALGARY, ALBERTA -- (Marketwired) -- 12/01/15 -- Target Capital Inc. ("Target") (TSX VENTURE: TCI)(CSE: TCI) announced that it has acquired a portfolio of 53 Controlled Private Companies ("CPC") and associated controlling shareholder agreements, receivables, and royalty agreements from Eyelogic Systems Inc. ("Eyelogic") for aggregate proceeds of $75,000. Upon completion of the acquisition, Target will have at least 171 CPC subsidiaries.
The nature of the Company's investment in the controlled private companies enables the debt securities of the companies to be eligible for Deferred Plans. A Deferred Plan is a registered retirement savings plan, registered education savings plan, registered retirement income fund, a locked-in retirement account or a tax-free savings account. The promoters managing these companies use the capital raised at their own discretion, without reliance on the management or resources of Target. Target's management and capital are not committed to these controlled private companies. More information on the Company's investment in CPCs can be found in the Target's Q2-2016 Management Discussion & Analysis and 2015 Annual Report, both of which are available on SEDAR.
Target's purchase of assets from Eyelogic is a related party transaction as Target and Eyelogic are both controlled by Rick Skauge and the two companies share one common director and one officer (being Rick Skauge and Kristoffer Moen). In order to ensure that the transaction was independently considered, all conflicted members of Target's Board abstained from voting to approve the purchase, whereby the purchase was approved only by independent Target directors. The non-conflicted and independent Target Board members unanimously agreed that this asset purchase was in the best interests of the Target shareholders.
Neither 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:
Target Capital Inc.
Kristoffer Moen
CFO
403.261.7500
kris.moen@targetcapitalinc.com
www.targetcapitalinc.com
