Business
Pacific Bay Minerals Announces Debt Conversion and Restructuring
Vancouver, British Columbia--(Newsfile Corp. - March 28, 2023) - Pacific Bay Minerals Ltd. (TSXV:...
About this update from Pacific Bay Minerals Ltd.
[{"type":"text","content":"Pacific Bay Minerals Announces Debt Conversion and RestructuringVancouver, British Columbia--(Newsfile Corp. - March 28, 2023) - Pacific Bay Minerals Ltd. (TSXV: PBM) (\"Pacific Bay\" or, the \"Company\") is pleased to announce that it has reached an agreement with the estate of former Pacific Bay director Guilford Brett (the \"Estate\") to convert approximately $200,000 of debt consisting of loans, cash advances and accrued interest into common shares of the Company (\"Shares\") at a price of $0.05 per Share (the \"Debt Conversion\"). The 4,000,000 Shares to be issued pursuant to the Debt Conversion will be subject to a hold period expiring four months and one day after the date of issuance. Following the issuance of the Shares, the Estate will hold 4,495,297 Shares, or approximately 15.28% of the total issued and outstanding Shares. Further, the Estate and Mr. David Brett, Chairman of the Company (collectively, the \"Creditors\"), have agreed to forgive certain additional debts of the Company, and sell the balance of the amounts due from the Company to a third party (the \"Debt Consolidation\" and, collectively with the Debt Conversion, the \"Transactions\"). Pursuant to the terms of the Debt Consolidation, the Creditors will forgive an aggregate of approximately $125,000 which was incurred by the Company to support operations since 2015. The balance of the amount owing to the Creditors, in the amount of approximately $60,000 (the \"Purchased Debt\"), will be purchased by an arm's length third party. The Purchased Debt will be a general unsecured debt obligation of the Company, bearing no interest and having no fixed terms of repayment.Further, as disclosed in the Company's September 30, 2022 interim financial statements, the Company previously entered into release and settlement transactions with three former officers of the Company (collectively, the \"Former Officers\"), pursuant to which an aggregate of $239,845 of debt was forgiven. Beginning in 2020 and through the term that the Former Officers were engaged by the Company, the Creditors assigned approximately $225,000 of accrued debt owing from the Company (the \"Assigned Debt\") to the Former Officers. The Assigned Debt was forgiven as part of the release and settlement transactions with the Former Officers.The Transactions are designed to improve the financial conditio...