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RediShred Capital Corp. Closes Non-Brokered Private Placements and Debt Conversion

Monday, 23 January 2017 06:26 PM

RediShred Capital Corp.

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MISSISSAUGA, ON / ACCESSWIRE / January 23, 2017 / On January 23, 2017, RediShred Capital Corp. (TSXV: KUT) (the "Company") closed its previously announced private placements and debt conversion.

The Company raised approximately $2.03 million out of a maximum of up to $4 million being offered to all eligible existing shareholders and raised an additional $2 million in an additional offering. Both private placement transactions sold units of the Company (the "Units") at a price of $0.30 per Unit. Each Unit is comprised of one common share in the capital of the Company (a "Common Share") and 0.15 of a Common Share purchase warrant (each whole such warrant, a "Warrant"). Each Warrant is exercisable into one Common Share at a price of $0.36 per Common Share for a period of five years from the closing date of the offerings. No commissions or finders fees were paid in connection with the offerings.

The proposed principal use of proceeds of the offerings is to fund acquisitions that the Company is planning to conduct. The actual allocation of net proceeds may vary depending on future operations or unforeseen events or opportunities.

In addition, the Company converted $642,078 of debt held by insiders of the Company into equity at a price of $0.30 per Common Share.

The Company issued 15,587,927 Common Shares, via the private placement and debt conversions, and an additional 2,002,150 Warrants. Note an an insider of the Company waived Warrants on a portion of its subscription. The Common Shares and Warrants issued under the private placements and debt conversion are subject to a statutory hold period expiring May 24, 2017 and are not freely tradeable until that date.

Following these transactions, recent exercises of previously outstanding options and conversion of previously outstanding convertible debentures, the Company has outstanding 46,902,587 Common Shares, options exercisable for 675,000 Common Shares and Warrants exercisable for an additional 2,002,150 Common Shares.

Regulatory Early Warning Disclosures

Moray Tawse, Toronto, Ontario, has acquired an additional 6,666,666 Common Shares of the Company, representing 14.2% of the new total outstanding, and 1,000,000 Warrants pursuant to the private placements. Mr. Tawse now owns or controls 11,589,743 Common Shares representing approximately 24.7% of the outstanding Common Shares, increased from 15.2%, plus 1,000,000 Warrants. The purchases were made for investment purposes. Subject to regulatory limitations, Mr. Tawse and companies controlled by him may acquire, dispose of or continue to hold shares in the normal course of his investment activities. For further information contact Hilda Wong, 416-597-7660.

As a result of the transactions by the Company, the ownership of Professional Shredding Partnership, Toronto, Ontario, has fallen below 10% of the outstanding Common Shares. Professional Shredding Partnership now owns or controls 3,627,564 Common Shares representing approximately 7.7% of the outstanding Common Shares, decreased from 10.9%. Subject to regulatory limitations, Professional Shredding Partnership may acquire, dispose of or continue to hold shares in the normal course of his investment activities. For further information contact Brad Foster - 416-204-7552.

About the Company

Redishred Capital Corp. is the owner of the PROSHRED® trademarks and intellectual property in the United States. 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 9001:2008 certification. It is PROSHRED®'s vision to be the 'system of choice' and provide shredding and recycling services on a global basis. 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 six 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.

FOR FURTHER INFORMATION ON REDISHRED PLEASE CONTACT:

Redishred Capital Corp. (TSXV: KUT)
Jeffrey Hasham, MBA, CPA, CA
Chief Executive Officer
[email protected]
www.redishred.com
Phone: (416) 849-3469 Fax: (905) 812-9448

or,

Redishred Capital Corp. (TSXV: KUT)
Jack Pulkinen, CPA, CA
Vice President of Corporate Development
[email protected]
www.redishred.com
Phone: (416) 204-0076 Fax: (905) 812-9448

Note: 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.

None of the securities issued in connection with the financing will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

This news release contains forward looking statements that reflect the current expectations of management of Redishred and Redishred's future financing, prospects and opportunities, including statements relating to the anticipated use of proceeds and expectations of completing acquisitions. Wherever possible, words such as "may", "will", "estimate", "believe", "expect", "intend" and similar expressions have been used to identify these forward looking statements. These statements reflect current beliefs and are based on information currently available to management of Redishred. Forward looking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including including: (i) adverse market conditions; (ii) the ability to find and negotiate acceptable terms for any acquisitions, as well as those discussed in the 2016 management discussion and analysis under "Risk Factors", could cause actual financing, prospects or opportunities to differ materially from the results discussed or implied in the forward looking statements. These factors should be considered carefully and a reader should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Redishred will prove to be correct. Readers are cautioned that such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Redishred can give no assurance that actual results will be consistent with these forward-looking statements.

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

SOURCE: RediShred Capital Corp.

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