Aug. 17, 2012
Gensource Capital Corporation (formerly Augen Capital Corp.) announces the closing of its previously announced acquisition of 100% of Nexxt Potash Inc. pursuant to a three-cornered amalgamation (the "Transaction"). Nexxt is a private company incorporated under the Canada Business Corporations Act, holding rights to a number of potash leases in Saskatchewan.
On closing of the Transaction, Nexxt amalgamated with a wholly-owned subsidiary of Gensource ("Subco"), pursuant to which:
· each Nexxt share (other than Nexxt shares held by Gensource's subsidiary) outstanding immediately prior to closing was exchanged for one common share of Gensource;
·each share of Subco outstanding immediately prior to closing was exchanged for one common share of the amalgamated company ("Amalco"); and
· Amalco became a wholly-owned subsidiary of Gensource.
On closing, former shareholders of Nexxt (other than Gensource's subsidiary) were issued, in aggregate, 20,162,500 common shares of Gensource representing approximately 20.6% of Gensource's then outstanding shares.
"We are very pleased to have closed the transaction to acquire Nexxt Potash" said Alan Cruickshank President and CEO of Gensource Capital. "The Nexxt team led by Steve Halabura has an exceptional background of successful potash development. We intend to leverage our combined knowledge, experience and relationships to build shareholder value inside Gensource."
The Company also announces that Mr. Peter Miller has resigned from the Board of Directors of the Company. The Company thanks Mr. Miller for his service and contributions to the Company during his tenure as a director. The Company is pleased to announce that Mr. Stephen Halabura has been appointed to the Board of Directors of the Company.