Canadian Metals Announces Shares for Debt Transaction
March 31, 2016 (Source) — Canadian Metals Inc. ( the “Corporation”) (CSE:CME) announces that in light of the Corporation’s current working capital position, and in order to preserve its cash to fund development of the Corporation’s ongoing projects, it has extinguished a total of $319,224.15 of debt relating to consulting fees and service fees to certain arm’s length and non-arm’s-length parties by issuing an aggregate of 2,128,161 common shares of the Corporation (each a “Share“) at a deemed price of $0.15 per share (the “Debt Settlement“).
As part of the Debt Settlement, Mr. Robert Boisjoli, CFO of the Corporation, was issued 500,000 Shares, Vega Capital Inc., a company wholly owned by Mr. Michel Gagnon, a director of the Corporation, was issued 250,000 Shares, and 7682654 Canada Inc., a company controlled by Mr. Victor Cantore, a director of the Corporation, was issued 1,100,000 Shares. The participation of each of Mr. Boisjoli, Vega Capital Inc. and 7682654 Canada Inc. (collectively, the “Related Parties“) in the Debt Settlement is considered a “related party transaction” under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Corporation is relying on Sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, for exemptions from the formal valuation and minority approval requirements under MI 61-101, as neither the fair market value of the Shares issued to the Related Parties nor the amount of debt settled pursuant thereto exceeded 25% of the Corporation’s market capitalization.
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All Shares issued pursuant to the Debt Settlement will be subject to a hold period of four months and one day from their date of issuance and as such are restricted from trading until August 1, 2016.
About Canadian Metals
Canadian Metals Inc. is focused exclusively on the development of its Langis Project, a high-purity silica deposit located in the province of Quebec. The Company is rapidly positioning itself to eventually become a North American silicon metal producer.
Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
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