WestBond Enterprises Corporation (the "Company") is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement of common shares (the "Offering"). The Company issued 14,875,000 common shares at a price of $0.08 per common share, raising aggregate gross proceeds of $1,190,000.
The net proceeds of the Offering will be used to purchase plant and equipment to vertically integrate and expand the Company's manufacturing of paper products.
In connection with the Offering, the Company paid a cash finder's fee of $32,400 representing 8% of the gross proceeds raised from subscribers introduced to the Company by a finder. In addition, the finder received 405,000 common share purchase warrants (the "Warrants") representing 8% of the number of common shares issued to subscribers introduced to the Company by the finder. The Warrants may be exercised at a price of $0.08 per common share until September 18, 2014.
Gennaro Magistrale, the Company's President and Chief Executive Officer and a Director, acquired 5,625,000 common shares under the Offering. As a result, Mr. Magistrale's holdings increased from 1,535,524 common shares (13.9% of the Company's issued and outstanding shares) to 7,160,524 common shares (27.6% of the Company's issued and outstanding shares). Mr. Magistrale acquired his common shares under the Offering for investment purposes and may increase or decrease his ownership of securities of the Company from time to time.
Upon closing of the Offering, Mr. Magistrale became a 'Control Person', as defined under the policies of the TSX Venture Exchange. The shareholders approved the creation of Mr. Magistrale as a Control Person at the Company's annual general and special meeting held on September 4, 2013.