Zaff LLC Acquires Shares of Itafos

TORONTO, ONTARIO--(Marketwired - March 13, 2017) - Zaff LLC (Zaff) announced that it has acquired ownership of and control over 10,295,322 shares (the Acquired Shares) of Itafos (Itafos) (TSX VENTURE:IFOS) by way of the Offering (as defined below). On March 9, 2017, Itafos completed a brokered private placement offering of shares for gross proceeds of approximately US$34 million (the Offering). Zaff acquired the Acquired Shares in the Offering by subscribing for 8,388,781 shares of Itafos at a price of CAD$2.10 for an aggregate US$13,200,000, and by subscribing for 1,906,541 shares of Itafos at an effective price of CAD$2.10 in lieu of a cash repayment by Itafos to Zaff to settle an outstanding cash advance of US$3,000,000 made by Zaff to Itafos on February 23, 2017 (the Transaction).

Prior to the Transaction, Zaff had direct or indirect ownership of or control over 55,573,669 shares of Itafos, representing approximately 96.60% of the issued and outstanding shares (on an undiluted basis) of Itafos (the Shares).

Following the completion of the Transaction, Zaff has direct or indirect ownership of or control over 65,868,991 shares of Itafos, representing approximately 83.04% of the issued and outstanding shares (on an undiluted basis) of Itafos.

The Acquired Shares are being acquired for investment purposes. However, Zaff may take actions in the future in respect of its holdings in Itafos based on the then existing facts and circumstances, which actions could include, without limitation, acquisitions or dispositions of shares, whether in the open market, by privately negotiated agreement or otherwise, or in connection with a strategic transaction with Itafos.

The registered office of Itafos is located at P.O. Box 309, Ugland House, Grand Cayman, Cayman Islands, KY1-1104.

For further information, including a copy of the corresponding report filed with Canadian securities regulators, please contact:

Zaff LLC
109 N. Post Oak Lane
Suite 435
Houston, Texas 77024
Attention: Brent de Jong
Telephone: 1-713-239-2701