Business
Search Minerals Receives $1.5m of Debentures Conversion, Announces Shares for Debt and Loan Extension
VANCOUVER, British Columbia, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”), is pleased to announce that InCoR H
About this update from Search Minerals Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”), is pleased to announce that InCoR Holdings Limited (“InCoR”) has agreed to convert its convertible debenture of the Company (the “InCoR Debenture”) in the principal amount of $1,000,000, as of November 11, 2020. Additionally, Springhill Investments Ltd. (“Springhill”) has agreed to convert its convertible debenture of the Company (the “Springhill Debenture”) in the principal amount of $500,000, as of November 11, 2020. Each of the InCor Debenture and Springhill Debenture (together, the “Debentures”) is convertible into units of the Company (“Units”), at a price of $0.05 per Unit. Each Unit consists of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant is exercisable into one Share at a deemed price of $0.05 per Warrant, for a period of five years from the date of conversion. As a result of the conversion of the Debentures, the Company will issue a total of 20,000,000 Units to InCoR, in accordance with the terms of the InCor Debenture and a total of 10,000,000 Units to Springhill, in accordance with the terms of the Springhill Debenture. The Company has also agreed to issue 3,800,000 Shares at a price of $0.05 per Share in settlement of outstanding debt of approximately $190,000 (the “Shares for Debt Transaction”), owing to certain arm’s length and non-arm’s length parties (together, the “Creditors”). Greg Andrews, President/CEO states: “We appreciate the support that InCoR and Springhill are providing Search with their early conversion of these debentures. These conversions strengthen our balance sheet with the elimination of these liabilities, and interest costs associated with the debentures. In addition, we thank certain creditors for their shares for debt transactions, which helps preserve our current cash position.” The conversion of the InCor Debenture constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) because InCoR is a “Control Person” of the Company. Additionally, the issuance of Shares to certain Creditors pursuant to the Shares for Debt Transaction constitutes a “related party transaction” within the meaning of MI 61...