Shareholders of Yaletown backed Solegear approve going public QT

Shareholders of Yaletown backed Solegear approve going public QT
December 18
20:55 2014

Rodeo Capital III Corp. (TSX-V: ROP.P), a capital pool company, disclosed today that January 28, 2015 is the expected closing date of its previously announced qualifying transaction with Solegear Bioplastics Inc. by way of plan of arrangement and of Solegear’s previously announced brokered and non-brokered private placement financing.

Solegear shareholders voted to approve the arrangement at a special meeting of the Solegear sShareholders held on December 17, 2014. 100% of the Solegear shares voted at the meeting were voted in favor of the special resolution approving the arrangement. Shareholders holding 69% of Solegear’s common shares and 74% of Solegear’s preferred shares were represented at the Meeting in person or by proxy.

Rodeo and Solegear entered into the arrange agreement on November 24, 2014, which will constitutes as Rodeo’s Qualifying Transaction (QT). The transaction would value Solegear at a deemed value of approximately $10 million.

Immediately before the closing of the QT, Solegear would complete a brokered private placement financing for gross proceeds of between $4.0 million and $6.0 million, inclusive of the conversion of approximately $1.8 million of convertible debt securities and accrued interest held by Yaletown and other securityholders.

Since its inception in 2005, Solegear has raised over $4.7 million in equity and debt financing from Yaletown Venture Partners, Best Buy Capital, the venture capital investment arm of Best Buy, and private investors.

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