Hodgins Auctioneers seeks to consolidate common shares and raise working capital by non-brokered private placement

MELFORT, SK, Jan. 12, 2015 /CNW/ - Hodgins Auctioneers Inc. (HA-TSX.V) ("Hodgins" or the "Company") wishes to announce that it will be seeking shareholder approval at the annual general and special meeting of shareholders to be held on February 13, 2015 to consolidate its common shares on the basis of 2 old for 1 new.  The Company will keep its existing name and trading symbol.

The Company has sought TSXV approval for a proposed non-brokered private placement of up to 11,000,000 units at a price $0.05 per unit for gross proceeds of up to $550,000.  Each unit will be comprised of one common share (post 2 old for 1 new consolidation) in the capital of Hodgins and one half of one common share purchase warrant.  Each full warrant will entitle the holder to purchase one common share (post 2 old for 1 new consolidation) at a price of $0.075 per common share exercisable no later than the date that is one year from the date of issuance of such warrant provided.   All of the securities issued under the private placement will be subject to a four month resale restriction and will contain a legend which will detail the resale restriction.  There is no minimum subscription under the private placement and Hodgins may close the offering in several tranches, however, the private placement must be concluded by February, 2015. The proceeds of the private placement will be unallocated and may be used for working capital or to partially fund acquisitions.  In connection with this private placement, Hodgins will pay cash finder's fees equal to 8% of the funds raised to eligible finders who introduce subscribers to the private placement and issue one common share and one finder's fee warrant for every 10 units issued to eligible subscribers.  Each finder's fee warrant will be issued to finders on the same terms as the warrants comprising the units.

About Hodgins Auctioneers Inc.

Headquartered in Melfort, SK for more than 50 years, Hodgins Auctioneers is a provider of professional auction services. Hodgins is renowned for its experienced Auctioneers, award-winning promotions, dependable results and commitment to providing the ultimate marketplace for the sale of assets by auction.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Hodgins Auctioneers Inc.

Copyright 2015 Canada NewsWire