Benzai Capital Corp. Announces Non-Brokered Private Placement
BENZAI CAPITAL CORP 2110– 1177 West Hastings Street Vancouver BC V6E 2K3 Phone: (604) 669-4340 Fax: (604) 909-4682
April 25, 2012 BNZ.H: TSX Venture Exchange
NEWS RELEASE BENZAI CAPITAL CORP. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT
VANCOUVER, BC: Benzai Capital Corp. (the “Company”) announces that it has arranged, subject to regulatory approval, a non-brokered private placement (the “Offering”) of 1,000,000 Units (the “Units”) on a pre-consolidated basis at a price of $0.05 per Unit for gross proceeds of up to $50,000. Each Unit will consist of one common share of the Company (a “Share”) and one transferable common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Share at a price of $0.10 for a period expiring one year from the date of issuance.
The Offering is not part of the private placement which was described in the Company’s news release, dated February 10, 2012, announcing an agreement in principle to acquire all of the shares of Redline Minerals Inc. (“Redline”) as the Company’s “qualifying transaction” (“Qualifying Transaction”).
Closing of the Offering is subject to the receipt of all necessary corporate and regulatory approvals, including the TSX Venture Exchange. Proceeds from the Offering will be used by the Company to pay filing fees in completion of its Qualifying Transaction and to advance a $40,000 loan to Redline, secured against Redline’s New Mexico mineral properties, and may not be refunded to the Subscriber if the Qualifying Transaction does not close. Redline will use the loan to make option payments on its New Mexico properties and for geological sampling. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus one day from the date of completion of the Offering, in accordance with the applicable securities legislation, and may be further restricted from trading subject to the existing trade halt on the Company’s stock.
BENZAI CAPITAL CORP.
“Len Guenther”
Director and Corporate Secretary
BENZAI CAPITAL CORP.
Suite 2110 – 1177 W. Hastings Street Vancouver, BC, Canada V6E 2K3 Tel: 604.669-4340 Fax: 604.909-4682
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.