Business
EastCoal Inc. Announces Shares for Debt Transactions
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED S...
About this update from Cotec Holdings Corp
[{"type":"text","content":"EastCoal Inc. Announces Shares for Debt TransactionsNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / May 4, 2020 / EastCoal Inc. (TSXV:ECX.H) (\"EastCoal\" or the \"Company\") is pleased to report that it has reached agreements with certain creditors (the \"Creditors\") to issue an aggregate of 7,577,531 common shares (the \"Shares\") in the capital of the Company at a deemed price of $0.0675 per Share to settle a total of $511,483.42 in outstanding debt (the \"Transactions\").The Transactions are each considered to be a \"related party transaction\" as defined under Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (\"MI 61-101\") as each of the Creditors, being John Conlon and Abraham Jonker, is a related party of the Company. The Transactions are exempt from the formal valuation requirements of MI 61-101 pursuant to subsection 5.5(a) of MI 61-101.In accordance with MI 61-101 and the policies of the TSX Venture Exchange (the \"Exchange\"), the Transactions are subject to shareholder approval, as both Creditors are control persons of the Company. As a result, the Company is seeking shareholder approval of the Transactions at the Company's Annual General and Special Meeting on June 9, 2020. Completion of the Transactions is conditional upon obtaining shareholder and Exchange approval. Following receipt of such approvals, the Transactions are expected to close on or about June 12, 2020.All Shares issued pursuant to the Transactions will be subject to a hold period of four months and one day from the date of issuance, in accordance with applicable securities legislation.About EastCoal Inc.EastCoal Inc. is publicly trading mining issuer currently listed on the NEX Board of the TSXV.For further information, please contact:EastCoal Inc.Attention: Damien ForerPhone: 778-960-8517Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward Looking InformationStatements regarding the Company which are not historical facts, including the Company's plans to close the Transactions, issue the Shares and hold its annual general and special meeting, are \"forward-lookin...