Business
Pancon Announces Debt Settlement and Option Grant
Toronto, Ontario--(Newsfile Corp. - June 10, 2021) - Pancontinental Resources Corporation (TSX...
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[{"type":"text","content":"Pancon Announces Debt Settlement and Option GrantToronto, Ontario--(Newsfile Corp. - June 10, 2021) - Pancontinental Resources Corporation (TSXV: PUC) (\"Pancon\" or the \"Company\") announced that it has agreed to settle an aggregate of $103,000 of indebtedness owed to certain non-arm's length creditors of the Company through the issuance of an aggregate of 515,000 common shares (\"Common Shares\") of the Company at a deemed price of $0.20 per Common Share (the \"Debt Settlement\"). The Debt Settlement remains subject to receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the Debt Settlement will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. The Debt Settlement will constitute a \"related party transaction\" as defined in Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (\"MI 61-101\"), as insiders of the Company will be issued an aggregate of 515,000 Common Shares. The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, as the Company is not listed on a specified market and the fair market value of the Common Shares being issued to insiders in connection with the Debt Settlement does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. A material change report will be filed not less than 21 days before the closing date of the Debt Settlement. This shorter period was reasonable and necessary in the circumstances, as it was necessary for the Company to complete the Debt Settlement to immediately improve the financial position of the Company.In addition, the Company announces that is has granted an aggregate of 105,000 options to purchase Common Shares of the Company exercisable at a price of $0.25 per Common Share for a period of five (5) years to a director of the Company, and an aggregate of 150,000 options to purchase Common Shares of the Company exercisable at a price of $0.25 per Common Share for a period of one (1) year to a director of the Company. The Common Shares issuable upon exercise of the options ...