Redishred Announces $7,502,000 Bought Deal Equity Financing

MISSISSAUGA, ON, Dec. 7, 2021 /CNW/ - Redishred Capital Corp. ("Redishred" or the "Company") (TSXV: KUT) is pleased to announce that it has entered into an agreement with Acumen Capital Finance Partners Limited as Sole Bookrunner and Co-Lead Underwriter along with Echelon Capital Markets as Co-Lead Underwriter, on behalf of a syndicate of underwriters (collectively, the "Underwriters"), where the Underwriters have agreed to purchase, on a bought deal basis, 8,525,000 common shares of Redishred ("Common Shares") at a price of $0.88 per Common Share (the "Offering Price") for gross proceeds to the Company of approximately $7,502,000 (the "Offering").

The Company has granted the Underwriters an over-allotment option exercisable at any time up to 30 days following the closing of the Offering, to purchase up to an additional 1,278,750 Common Shares at the Offering Price. In the event that the over-allotment option is exercised in full, the gross proceeds of the Offering will be approximately $8,627,300.

The Company expects to use the net proceeds from the Offering to conduct acquisitions, repay indebtedness related to past acquisitions and for general corporate purposes.  

The Common Shares will be offered by way of a short form prospectus supplement, qualifying the Common Shares for distribution in all of the Provinces of Canada, excluding Quebec, and in the United States by way of private placement pursuant to available exemptions from the registration requirements of the United States Securities Act of 1933, as amended, and outside of Canada and the United States on a private placement or equivalent basis.

The closing of the Offering is scheduled to occur on or about December 23, 2021, and is subject to customary closing conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities, and the satisfaction of other customary closing conditions.

About Redishred

Redishred Capital Corp. is the owner of the PROSHRED® trademarks and intellectual property in the United States and Internationally. PROSHRED® shreds and recycles confidential documents and proprietary materials for thousands of customers in the United States in all industry sectors. PROSHRED® is a pioneer in the mobile document destruction and recycling industry and has the ISO 9001:2015 certification. It is PROSHRED®'s vision to be the 'system of choice' and provide shredding and recycling services on a global basis. PROSHRED® currently services over 40 markets in the United States. Redishred Capital Corp. grants PROSHRED® franchise businesses in the United States and by way of license arrangement in the Middle East. Redishred Capital Corp. also operates fifteen corporate shredding businesses directly. The Company's plan is to grow its business by way of both franchising and the acquisition and operation of document destruction businesses that generate stable and recurring cash flow through a scheduled client base, continuous paper recycling and concurrent unscheduled shredding service.

Note: The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Caution Regarding Forward Looking Information:

Certain statements in this press release may constitute "forward-looking" statements and information, which involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. When used in this document, such statements include such words as "may," "will," "expect," "believe," "plan," and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this document. There should not be an expectation that such information will in all circumstances be updated, supplemented, or revised whether as a result of new information, changing circumstances, future events, or otherwise.

SOURCE RediShred Capital Corp.

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