Business
Lupaka Gold to issue Contingent Value Rights and Consolidate its Common Shares
VANCOUVER, British Columbia, May 03, 2022 (GLOBE NEWSWIRE) -- Lupaka Gold Corp. ("Lupaka" or the “Company") (TSX-V: LPK, FRA: LQP) is pleased to announce that i
About this update from Lupaka Gold Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, May 03, 2022 (GLOBE NEWSWIRE) -- Lupaka Gold Corp. (\"Lupaka\" or the “Company\") (TSX-V: LPK, FRA: LQP) is pleased to announce that it intends to issue contingent value rights (each, a “CVR”) to its shareholders and take certain other measures to facilitate the growth of the Company. Contingent Value Rights Each CVR will entitle the holder to receive a pro rata portion of any net amount available for distribution if the Company receives a cash award in the Company’s ongoing arbitration proceedings with the Republic of Peru (the “Arbitration”). The net amount will be calculated by deducting from the Award proceeds certain amounts including the fees of the Company’s Arbitration counsel and other payables and amounts to be retained by the Company for working capital and other corporate purposes, and a de minimus threshold will be applied to determine if a payment will be made to the CVR holders. The Company anticipates issuing the CVRs by way of a one-time special dividend to shareholders holding common shares of the Company as of May 18, 2022 (the “Record Date”). Each shareholder on the Record Date will receive one CVR for each common share of the Company held. The Company expects the CVRs to be governed by the terms of an indenture to be entered into between the Company and Computershare Trust Company of Canada. The issuance of the CVRs by the Company will crystallize the entitlement of current shareholders to a portion of an Arbitration award received by the Company, if any, and prevent dilution of this entitlement through future share issuances of the Company. The issuance of the CVRs is also expected to provide the Company with an enhanced ability to raise equity financing and pursue acquisitions and development of mineral properties. The CVR issuance remains subject to approvals including the approval of the TSX Venture Exchange (the “Exchange”). There can be no assurance that the CVRs will be issued. The Company advises that the arbitration continues to progress per the agreed to schedule and that there have been no material developments in the status of the Arbitration since the Company’s most recent update on October 7, 2021.There can be no assurances that the Company will be successful in its Arbitration claim or receive any Arbitration award. Further, even if an Arbitration award is receive...