CR Capital Corp. Closes a C$814,800 First Tranche of the Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, July 20, 2020 (GLOBE NEWSWIRE) -- CR Capital Corp. (TSX-V / CIT) (“CR Capital” or the “Company”) is pleased to announce that it has closed the first tranche (the “First Tranche”) of the non-brokered private placement previously announced (see news releases dated July 2, 2020 and July 3, 2020) of a combination of flow-through units (“FT Units”) and hard-dollar units (“HD Units”) (the “Offering”). The Offering consists of the sale of up to $500,000 worth of HD Units offered at C$0.08 per HD Unit and up to $500,000 worth of FT Units offered at C$0.10 per FT Unit (inclusive of the Company’s over-allotment option for an additional 3,000,000 FT Units).

Each FT Unit consists of one (1) common share of the Company that qualifies as a “flow-through common share” (a “FT Share”), and one-half of one (0.5) common share purchase warrant (each whole warrant, a “FT Warrant”), with each FT Warrant entitling the holder thereof to acquire one (1) additional common share of the Company at a price of $0.125 for a period of eighteen (18) months following the closing of the Offering. Each HD Unit consists of one (1) common share of the Company and one (1) common share purchase warrant (each a “Warrant”), with each Warrant entitling the holder thereof to acquire one (1) additional common share of the Company at a price of $0.10 for a period of eighteen (18) months following the closing of the Offering.

The First Tranche consisted of the sale of: (i) 5,810,000 Units for gross proceeds of $464,800 and (ii) 3,500,000 FT Units for the gross proceeds of C$350,000, for the aggregate gross proceeds of $814,800.

In connection with the First Tranche eligible finders were paid C$11,760 in cash compensation for their assistance with the First Tranche.

The Units, FT Units and underlying securities are subject to a customary four months and a day hold period. The Units, FT Units and underlying securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or applicable state securities laws and may not be offered or sold in the United States or to U.S. Persons (as defined in the U.S. Securities Act) without registration, or exemption from registration, under such laws.