The Debts include the amount of $2,057,939.89 owing to Hodgkinson Equities Corp. (“HEC”), a private company owned by Robert Hodgkinson, the CEO and a director of the Company, and $2,057,939.89 owing to Hodgkinson Ventures Inc. (“HVI”), a private company owned by Charles Hodgkinson, Robert’s brother. The amounts owed to HEC and HVI Ventures Inc. represent long standing loan advances and accrued interest. Independent shareholders approved these transactions in principle at the August 2020 Special AGM.
The Debts will be settled in full by the issuance to the creditors of 9,436,685 common shares (the “Shares”) at a deemed price of $0.475 per share.
The debt settlement Shares will be subject to resale restrictions prohibiting resale for a period of 4 months and a day from their date of issue. The debt settlements are subject to the acceptance for filing by the NEX.
The Shares were acquired by both HEC and HVI for investment purposes, but they do not act jointly or in concert. HEC and HVI both have a long-term view of the investment and may acquire additional securities of the Company, including on the open market or through private acquisitions or sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. Copies of HEC’s and HVI’s early warning reports will appear on the Company’s profile on SEDAR.