Auka Capital Corp. Announces Closing of Initial Public Offering

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These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States unless an exemption from registration is available. This press release does not constitute an offer to sell or the solicitation of any offer to buy these securities in the United States.

CALGARY, AB, Dec. 13, 2022 /CNW/ - Auka Capital Corp. ("Auka" or the "Company") (TSXV:  AUK.P) is pleased to announce that on December 13, 2022, it has successfully completed its initial public offering ("Offering"), raising gross proceeds of $750,000 pursuant to a prospectus dated September 15, 2022.  An aggregate of 7,500,000 common shares in the capital of the Company (the "Shares") were subscribed for at a price of $0.10 per Share. 

Canaccord Genuity Corp. (the "Agent") acted as the agent for the Offering.  The Agent received a cash commission equal to 10% of the gross proceeds of the Offering and Share purchase warrants entitling the Agent to purchase up to 750,000 Shares at a price of $0.10 per Share for a period of 5 years from the date of listing of the Shares on the TSX Venture Exchange (the "Exchange").

The Company is a "capital pool company" and intends to use the net proceeds of the Offering to identify and evaluate assets or businesses for acquisition with a view to completing a "Qualifying Transaction" under the policies of the Exchange. On December 8, 2022, the Exchange issued a bulletin announcing the listing of the Shares as of market open on December 12, 2022 and immediately halting trading pending completion of closing of the Offering. The Shares will resume trading under the trading symbol "AUK.P" on or about December 16, 2022.

Upon closing of the Offering, Auka granted 1,250,000 stock options to its directors and officers which are exercisable within ten years from the date of the grant at an exercise price of $0.10 per Share. As a result of the closing of its initial public offering, Auka now has 12,500,000 Shares issued and outstanding (5,000,000 of which are subject to escrow restrictions).

About the Company

Auka is a capital pool company ("CPC") within the meaning of the policies of the Exchange that has not commenced commercial operations and has no assets other than cash.  The board of directors of the Company consists of Robert Cole, Michael Kaiser, Frank Y. Sur, Dave Muddle, Jeff Lloyd, Ralf Kaiser and Jay Baraniecki.  The officers of the Company are Robert Cole, President and Chief Executive Officer, Michael Kaiser, Chief Financial Officer and Frank Y. Sur, Corporate Secretary. Except as specifically contemplated in the Exchange's CPC policy, until the completion of its Qualifying Transaction, the Company will not carry on business, other than the identification and evaluation of companies, business or assets with a view to completing a proposed Qualifying Transaction.

Forward Looking Information

This news release contains statements about Auka's expectations regarding the completion of the application for listing, and the commencement of trading, on the Exchange that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as statements regarding a potential target company for a qualifying transaction. Although Auka believes that the expectations reflected in these forward-looking statements are reasonable, as Auka assumes it will be able to fulfill the terms of the conditional listing approval granted by the Exchange and intends to operate its business in accordance with management's statements, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include the failure to fulfill the continuing conditions of listing on the Exchange and the inability to find an appropriate target company through which to complete a qualifying transaction. The forward-looking statements contained in this news release are made as of the date hereof, and Auka undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

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 news release.

SOURCE Auka Capital Corp.

Please contact: Robert Cole, President and Chief Executive Officer at: Telephone: [phone]