Business
Must Capital Closes Private Placement and Shares for Debt Transaction
Toronto, Ontario--(Newsfile Corp. - May 2, 2019) - Must Capital Inc. (TSXV: MUST.H) (the "...
About this update from Must Capital, Inc.
[{"type":"text","content":"Must Capital Closes Private Placement and Shares for Debt TransactionToronto, Ontario--(Newsfile Corp. - May 2, 2019) - Must Capital Inc. (TSXV: MUST.H) (the \"Company\") announces the closing of the non-brokered private placement (the \"Private Placement\") previously outlined in the news release dated March 7, 2019 and updated in the news release dated April 18, 2019. A total of 3,165,000 units (each, a \"Unit\") were issued at a price of $0.06 per Unit for aggregate gross proceeds of $189,900. Each Unit consists of one common share in the capital of the Company (each, a \"Share\") and one common share purchase warrant (each, a \"Warrant\"). Each Warrant entitles the holder to purchase one Share for a period of one year from the date of issuance at an exercise price of $0.08 per Share. The Company intends to use the proceeds from the Private Placement to repay indebtedness and for general working capital purposes.The Company also announces the closing of the shares for debt transaction (the \"Debt Settlement\") previously outlined in the news release dated April 9, 2019. The Company has settled an aggregate amount of $409,055 in indebtedness with certain creditors of the Company in exchange for an aggregate of 6,060,081 Shares and 2,506,807 common share purchase warrants (each, a \"Creditor Warrant\"). Each Creditor Warrant entitles the holder to purchase one Share for a period of one year from the date of issuance at an exercise price of $0.09 per Share. The Company decided to proceed with the Debt Settlement to preserve cash and improve the Company's balance sheet and the transaction was reviewed and approved by the Company's independent director.All securities issued under the Private Placement and in connection with the Debt Settlement, including securities issuable on exercise of the Warrants and Creditor Warrants, are subject to a hold period of four months plus a day in accordance with Canadian securities laws.As part of the Debt Settlement, Jason Meretsky (\"Meretsky\") agreed to settle $103,463.98 of indebtedness in exchange for 1,532,800 Common Shares and 1,532,800 Creditor Warrants, representing 11.52% of the Company's issued and outstanding Shares on an undiluted basis. The TSX Venture Exchange (the \"TSXV\") imposes due diligence requirements on persons becoming an insider and acquiring 10% or more of an issuer's ...