VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 18, 2017) - Kaiyue International Inc. (TSX VENTURE:KYU) (the "Company") - Further to the Company's news release dated April 12, 2017, the Company is pleased to announce that it has closed its non-brokered private placement financing of 1,000,000 common shares of the Company (each, a "Share"), at $0.05 per Share for proceeds of $50,000 (the "Private Placement"). All of the Shares issued pursuant to the Private Placement are subject to a restricted period of four months and one day from the date of closing.
Hilda Sung previously had beneficial ownership of, and control and direction over, 4,275,000 common shares of the Company and, pursuant to the Private Placement acquired an additional 1,000,000 resulting in beneficial ownership of, and control and direction over, an aggregate total of 5,275,000 common shares of the Company, representing approximately 24.91% of the total issued and outstanding common shares of the Company.
Hilda Sung is also a related party of the Company as defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied on the exemption available under Section 5.5 (b) of MI 61-101 from the requirement of having a formal valuation as the Shares are not listed on the Toronto Stock Exchange and other exchanges enumerated therein. The Company also relied on the exemption available under Section 5.7(1)(b) from the requirement of minority approval because the Private Placement is a distribution of securities for cash for not more than $2,500,000 and the Shares are not listed on the Toronto Stock Exchange and other exchanges enumerated therein
The Company intends to use the proceeds from the sale of the Shares for its working capital purposes.
ON BEHALF OF THE BOARD, KAIYUE INTERNATIONAL INC.
Jin Kuang, Chief Financial Officer
Neither 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.
Kaiyue International Inc.
Chief Financial Officer