/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
VANCOUVER, BC, Oct. 17,
2023 /CNW/ - RESAAS Services Inc. (TSXV: RSS)
(OTCQB: RSASF) ("RESAAS" or the "Company") is
pleased to announce that it has closed its oversubscribed
non-brokered private placement (the "Offering"), previously
announced on October 12, 2023, by
issuing 4,150,000 units of the Company (the "Units") at a
price of $0.32 per Unit for aggregate
gross proceeds to the Company of $1,328,000.
The Company intends to use the net proceeds of the Offering for
expansion, strengthening of the Company's balance sheet, and
general working capital purposes.
Each Unit consists of one common share of the Company (each, a
"Common Share") and one half of one Common Share purchase
warrant (each, a "Warrant"). Each whole Warrant entitles the
holder thereof to acquire one Common Share (each, a "Warrant
Share") at an exercise price of $0.60 per Warrant Share until October 17, 2024.
Certain insiders of the Company (collectively, the
"Interested Parties") subscribed for an aggregate of
1,375,000 Units under the Offering. The Interested Parties are each
considered a "related party" of RESAAS within the meaning of
Multilateral Instrument 61-101 – Protection of Minority Security
Holders in Special Transactions ("MI 61-101"), and the
sale of such Units to the Interested Parties constitutes a "related
party transaction" within the meaning of MI 61-101 and Policy 5.9
by the TSX Venture Exchange (the "TSX-V").
Prior to the closing of the Offering, the Interested Parties
collectively held and controlled approximately 19.20% of the
issued and outstanding Common Shares (on a non-diluted basis).
Immediately following the closing of the Offering, the Interested
Parties collectively held and controlled approximately 19.92% of
the issued and outstanding Common Shares (on a non-diluted basis).
The "related party" portion of the Offering was exempt from the
minority approval requirement of Section 5.6 and the formal
valuation requirement of Section 5.4 of MI 61-101 as neither the
fair market value of the "related party" portion of the Offering,
nor the fair market value of the consideration of the "related
party" portion of the Offering, exceeded 25% of the Company's
market capitalization. The Company did not file a material change
report disclosing the "related party transaction" more than 21 days
before the expected closing date of the Offering as the details of
the Offering and the participation therein by each Interested Party
was not settled until shortly prior to the closing of the Offering.
All securities issued under the Offering will be subject to a
four-month and one-day hold period in accordance with applicable
Canadian securities laws, and securities issued to certain
Interested Parties will be subject to a concurrent four-month hold
under the policies of the TSX-V. The Offering remains subject to
the receipt of all necessary regulatory approvals, including the
final approval of the TSX-V.
In connection with the Offering, the Company paid Haywood
Securities Inc. and Canaccord Genuity Corp. (each, a
"Finder") an aggregate cash finder's fee of $29,050, equal to 5% of the gross proceeds raised
by each Finder.
The securities referred to in this news release have not
been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), and
may not be offered or sold in the United
States or to, or for the account of benefit of, U.S. persons
absent registration or an applicable exemption from the
registration requirements of the U.S. Securities Act. This news
release shall not constitute an offer to sell, nor the solicitation
of an offer 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.
About RESAAS Services
Inc.
RESAAS is an award-winning global technology platform for the
real estate industry. With over 600,000 real estate agents
utilizing RESAAS in 160 countries, RESAAS enables real-time
industry communication, delivers new business opportunities and
captures unique real estate data. Some of real estate's biggest
brands leverage RESAAS to provide business intelligence to real
estate brokerages, franchises and associations. For more
information, please visit https://www.resaas.com.
Cautionary Note Regarding
Forward-Looking Statements
The TSX-V has neither approved nor disapproved the contents
of this news release. Neither the TSX-V nor its Regulation Services
Provider (as that term defined in the policies of the TSX-V)
accepts responsibility for the adequacy or accuracy of this
release.
Certain statements in this news release are forward-looking
and involve a number of risks and uncertainties. Such
forward-looking statements are within the meaning of the phrase
"forward-looking information" in the Canadian Securities
Administrators' National Instrument 51-102 – Continuous Disclosure
Obligations ("forward-looking statements").
Forward-looking statements are often, but not always, identified
by the use of words such as "seek", "anticipate", "plan",
"continue", "planned", "expect", "project", "predict", "potential",
"targeting", "intends", "believe", "potential", and similar
expressions, or describes a "goal", or variations of such words and
phrases or state that certain actions, events or results "may",
"should", "could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements in this news release include, but
are not limited to: the Company's intentions regarding its
objectives, goals or future plans, including expansion and future
capital requirements; the intended use of the net proceeds of the
Offering; and the receipt of all regulatory and stock exchange
approvals.
Forward-looking statements is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date such statements are made including, among
others, assumptions about: currency exchange rates and interest
rates; favourable operating conditions; political stability;
obtaining necessary approvals and financing on time; labour
stability; and anticipated costs and expenditures. Many assumptions
are based on factors and events that are not within the
control of RESAAS and there is no assurance they will prove to be
correct. Such forward-looking statements involves known
and unknown risks, which may cause the actual results to be
materially different from any future results expressed or implied
by such forward-looking statements, including, risks related to:
RESAAS's ability to implement its business objectives; general
economic conditions; loss of markets; inability to access
sufficient capital from internal and external sources, and/or
inability to access sufficient capital on favourable terms;
competition; currency and interest rate fluctuations; and other
risks. Although RESAAS has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. RESAAS disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise
unless required by law.
SOURCE RESAAS SERVICES INC.