Vancouver, British Columbia--(Newsfile Corp. - October 9, 2018) - American Biofuels Inc. (TSXV: ABS.H) announces that it has closed its private placement ("Financing") and shares for debt ("Debt") transactions announced in a News Release dated September 12, 2018. On October 5, 2018 the Company received acceptance from the NEX Board of the TSX Venture Exchange to close the Financing and Debt Transactions.
In accordance with the provisions of the Financing Subscription Agreements, on October 9, 2018, the Company issued a total of 5,800,000 common shares at $0.25 per share (the "Financing Shares").
Proceeds totaling $1,450,000 from the Financing will be used towards looking for a new business, to settle accounts payable and outstanding debt, and for general working capital purposes.
In accordance with Debt Agreements, on October 9, 2018, the Company issued a total of 840,000 common shares at $0.25 per share (the "Debt Shares") to settle a total of $210,000 in outstanding debt.
The Financing Shares and Debt Shares are subject to a hold period under applicable Canadian securities laws expiring on February 10, 2019, and will be subject to such further restrictions on resale as may apply under applicable foreign securities laws.
Four Insiders have directly and/or indirectly were issued a total of 240,000 Debt Shares which increased their pro rata shareholdings in the Company (the "Related Party Transaction"). All of the independent directors of the Company, acting in good faith, have determined that the fair market value of the securities being issued and the consideration paid is reasonable and is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101.
On behalf of the Board of Directors
SIGNED: "Teresa Cherry"
Teresa Cherry, CFO
Contact: (604) 336-8617
For further information on ABS.H, please visit our website at www.transamericanenergy.com.
The Company's public documents may be accessed at www.sedar.com
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
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.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
