Vancouver, British Columbia--(Newsfile Corp. - February 14, 2020) - Backstageplay Inc. (TSXV: BP) (FSE: DOZB) (OTC Pink: PRYNF) (the "Company") announces that in accordance with the Company's Articles, its Board of Directors has authorized the implementation of a share consolidation of the Company's common shares on the basis of two (2) pre-consolidation common shares for one (1) post-consolidated common share (the "Consolidation"). The Consolidation will provide the Company with a better capital structure in order to attract financing and other transaction-based opportunities. The Consolidation is subject to regulatory approval.
The approximately 26,693,373 common shares of the Company currently outstanding will be reduced to approximately 13,346,686 common shares. No fractional shares will be issued. Any fractional shares resulting from the consolidation of the Common Shares shall be converted such that each fractional Common Share remaining after conversion that is less than one-half of a Common Share be cancelled and each fractional Common Share that is at least one-half of a Common Share be changed to one whole Common Share. The exact number of post-consolidated common shares will vary depending on the treatment of fractional shares, which will occur when each shareholder's holdings in the Company are consolidated. Outstanding stock options and warrants would similarly be adjusted by the consolidation ratio.
The Company will not be changing its name or trading symbol in connection with the Consolidation. The Common Shares will continue to be traded on the TSX Venture Exchange under the Company's current name and under its current stock symbol "BP" on a post-consolidated basis. The Company will provide further details of the regulatory approval process in due course. This news release was prepared on behalf of the Board of Directors.
The Company also announced that it will complete a non-brokered private placement (the "Offering"), pursuant to which the Company will issue up to 2,500,000 common shares (the "Shares") at $0.10 per Share (on a post-consolidation basis) for gross proceeds of up to $250,000. All securities sold in the Offering will be subject to a statutory hold period of four months and a day from the date of issuance.
The Company may pay a finder's fee on the Offering within the maximum amount permitted by the policies of the TSXV exchange. The Company may complete multiple closings of the Offering, as subscriptions are received. Each closing is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals. The total proceeds from the Offering will be used for general corporate working capital.