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BC Moly Ltd. Announces Non-Binding Letter of Intent Entered into by Certain Shareholders Regarding Proposed Sale of BC Moly Shares, Conversion of Debt and Change of Management and Board
Burnaby, British Columbia--(Newsfile Corp. - July 13, 2021) - BC Moly Ltd. (TSXV: BM.H) (the "...
About this update from Bc Moly Ltd.
[{"type":"text","content":"BC Moly Ltd. Announces Non-Binding Letter of Intent Entered into by Certain Shareholders Regarding Proposed Sale of BC Moly Shares, Conversion of Debt and Change of Management and BoardBurnaby, British Columbia--(Newsfile Corp. - July 13, 2021) - BC Moly Ltd. (TSXV: BM.H) (the \"Company\" or \"BC Moly\") announces that it has been advised that 1095474 B.C. Ltd. (formerly Prairie Enterprises (Alberta) Inc.) (\"109 BC Ltd.\") and the Yurkowski Joint Partner Trust (the \"Yurkowski Trust\" and together with 109 BC Ltd., the \"Vendors\") have entered into a non-binding letter of intent (the \"LOI\") with an arm's-length purchaser (the \"Purchaser\") regarding: (i) the proposed purchase by the Purchaser and certain additional parties (collectively, the \"Purchaser Group\") of 4,465,156 common shares of the Company beneficially owned by the Vendors (the \"Initial Shares\") and the option to purchase a minimum of 19,740,754 additional common shares of the Company to be issued to 109 BC Ltd. (the \"Debt Shares\" and the \"Option\") following the proposed conversion of $1,110,417.39 of debt owing by the Company to 109 BC Ltd. (the \"Converted Debt\" and the \"Debt Settlement\"); and (ii) the proposed reconstitution of the board of directors and management of the Company such that all directors and officers of the Company will be comprised of the Purchaser's nominees (the \"Change of Management\" and collectively, the \"Proposed Transaction\").Pursuant to the terms of the LOI: (i) the Converted Debt would be converted into common shares of the Company at a price of $0.05625 per Debt Share; (ii) the purchase price for the Initial Shares would be $232,639 on the basis of a price of approximately $0.0521 per Initial Share; and (iii) the purchase price for the Option would be $467,365.37 with an aggregate exercise price of $1.00 and the Option would be exercisable commencing on the date that is four months following the closing of the Proposed Transaction. No definitive agreements have been entered into with respect to the Proposed Transaction and the completion of the Proposed Transaction remains subject to the entering into of all applicable definitive agreements and receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange (the \"TSXV\"). The completion of the Proposed Transaction will r...