Urban Select receives TSX-V approval for Granja Gold
Mr. David Yoo reports
URBAN SELECT ANNOUNCES EFFECTIVE DATE OF PLAN OF ARRANGEMENT
Further to the previously announced plan of arrangement with Urban Select Capital Corp.’s shareholders, Granja Gold Inc. and Urban Select Exploration Inc., the TSX Venture Exchange has given its final approval of the arrangement. Shareholder and final court approval for the arrangement were obtained on Dec. 19, 2011, and Dec. 21, 2011, respectively. Refer to the company’s information circular dated Nov. 18, 2011, for additional information concerning the arrangement.
The purpose of the arrangement is to restructure the company by creating two companies, Granja and Urban Exploration, which the company believes will be beneficial to the shareholders of the company, as it is expected that each of Granja and Urban Exploration will enter into definitive agreements to acquire a business upon completion of the arrangement. Management also believes that by creating these two new companies and providing the company’s shareholders with interests in both of these companies, shareholder value will be enhanced.
The effective date for the arrangement has been set as Feb. 29, 2012, which has also been determined as the record date for shareholders of the company to participate in the arrangement. Shareholders of record on the effective date, will receive approximately one share of Granja and one share of Urban Exploration for every 20 shares of the company that they own while retaining their common shares in the capital of the company. Fractional shares of Granja and Urban Exploration will not be issued, and any fractional shares resulting from the plan of arrangement will be cancelled.
The shares of the company will trade ex distribution on Feb. 27, 2012, meaning that purchasers of the company’s shares after Feb. 24, 2012, will not receive Granja or Urban Exploration shares pursuant to the arrangement.
There are currently 28,403,000 issued and outstanding shares in the capital of the company, therefore, assuming no additional shares of the company are issued before the effective date, a total of approximately 1,420,150 common shares in the capital of Granja and approximately 1,420,150 common shares in the capital of Urban Exploration shall be issued, on a pro rata basis, to the company’s shareholders.
We seek Safe Harbor.