CALGARY, AB, Feb. 6, 2025 /CNW/ – Auka Capital Corp. ("Auka") (TSXV: AUK.P), a capital pool company under TSX Venture Exchange Policy 2.4, and Dr. Phone Fix Canada Limited ("DPF") are pleased to announce the completion of the first tranche of DPF’s brokered private placement of subscription receipts ("Subscription Receipts"). This tranche, led by Canaccord Genuity Corp. as the lead agent, raised gross proceeds of $1,445,256.84 at a price of $1.37 per Subscription Receipt. A second and final tranche is expected in the coming weeks.
DPF completed the Financing through an agency agreement dated February 6, 2025, between DPF, Auka, and the Agent. In this tranche, DPF issued 1,054,932 Subscription Receipts. Each Subscription Receipt will automatically convert into one unit ("Unit") consisting of one Class "A" Common Share of DPF ("DPF Share") and one-half of a DPF common share purchase warrant ("DPF Warrant"), subject to certain adjustments. The DPF Warrant entitles holders to acquire one DPF Share at $2.28 per share. Upon completion of Auka’s proposed qualifying transaction ("Transaction"), DPF Shares and DPF Warrants will be exchanged for shares and warrants of the resulting issuer ("Resulting Issuer") at a conversion ratio of 11.4402330114547.
The gross proceeds, net of expenses and part of the Agent’s commission, are held in escrow under the Subscription Receipt Agreement. If the escrow release conditions are met by March 31, 2025, the funds will be released to the Resulting Issuer and the Agent. If not, or if the Transaction is terminated, Subscription Receipts will be canceled, and funds will be returned to subscribers on a pro-rata basis.
The Agency Agreement, Subscription Agreement, and Warrant Indenture have been filed on Auka's SEDAR+ profile at www.sedarplus.ca
About Auka
Auka is a capital pool company with no commercial operations or assets other than cash. As per TSX Venture Exchange rules, it will not conduct business until completing its qualifying transaction.
Legal Disclaimer
The securities mentioned will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the U.S. without proper registration or exemption. This release is not for U.S. distribution.
Completion of the Transaction is subject to conditions including regulatory approvals and DPF shareholder approval. There is no assurance the Transaction will be completed as planned. Investors should be cautious, as information in this release may not be complete.
This release includes forward-looking statements that involve risks and uncertainties. These statements are based on current expectations and assumptions but may differ due to unforeseen factors. Auka and DPF are not obligated to update any forward-looking statements except as required by law.
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