Electra Announces Cancellation of Change of Control Private Placement
VANCOUVER, BRITISH COLUMBIA - Electra Stone Ltd. (“Electra” or the “Company”) (TSX.V: ELT) (FSE: 44E1) announces that the previously announced $2,000,000 private placement with Metath Investment Co. Ltd., a British Virgin Islands company controlled by businessman Liu Hai Jian of Shenzhen, China, has been cancelled.
The Company and the investor had signed a letter of intent and had verbally agreed on the detailed terms of the private placement, as disclosed in the Company’s information circular prepared for its shareholder meeting which approved the change of control, but the investor has informed the Company that it will not complete the investment. As a result of deeper discussions the Company and the investor were unable to reach mutually agreeable terms.
The Company will continue to carry out its business plan to export, sell and market British Columbia Jade to China. The Company successfully exported its first container of 18 tonnes of BC jade which arrived in China on October 21st, 2015. A second container of 18 tonnes is being prepared for export and is expected to ship to China in the coming weeks.
“Our first priority remains the same. To bring Electra into revenue generation through the successful sales of BC Jade to China – the single largest buyer of BC jade”, stated Mr. John Costigan, President and CEO of Electra Stone Ltd.
About Electra Stone
Electra Stone Ltd. is focused on international market growth and trade of Nephrite Jade from British Columbia into Asian markets with a specific focus on China. Electra also continues to operate its Apple Bay aluminum-silica quarry on Vancouver Island, which has been in continuous operation since 2003.
For further information or interests on BC Jade or Electra Stone please contact Tyler Lowes at email@example.com or call 604-681-1568.
On behalf of the Board of Directors
President and Director
This press release contains forward-looking information or forward-looking statements (collectively “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “proposed”, “postulate” and similar expressions, or are those, which, by their nature, refer to future events. Forward looking statements in the news release included but are not limited to that we will export jade to China. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors, which include that we may not be able to source jade, we may not be able to get permits to export it to China and the market for jade may be weak or prices may be too low to profitably carry out the business. Even if we do export jade to China, there is no guarantee that we can do so profitably. The reader is referred to the Company’s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company’s profile on SEDAR at http://www.sedar.com.