Business
Signature Resources Announces Commencement of a Strategic Review Process and Corporate Restructuring
Toronto, Ontario--(Newsfile Corp. - November 15, 2022) - Signature Resources Ltd. (TSXV: SGU) ...
About this update from Signature Resources Ltd.
[{"type":"text","content":"Signature Resources Announces Commencement of a Strategic Review Process and Corporate RestructuringToronto, Ontario--(Newsfile Corp. - November 15, 2022) - Signature Resources Ltd. (TSXV: SGU) (OTCQB: SGGTF) (FSE: 3S3) (\"Signature\" or the \"Company\") announces it has commenced a strategic review process and corporate restructuring (the \"Strategic Review Process and Restructuring\"). While various technical consultants have given management and the board of directors a clear indication of the technical merits and the clear exploration potential of the Lingman Lake Project, the current challenging market conditions requires that the Company strategically pivot to ensure that shareholders may eventually benefit from the deeply discounted fundamental value at Signature. As part of the Strategic Review Process and Restructuring, the Company has:Initiated a Strategic Review Process to find the best alternative to advance the Lingman Lake Project that benefits Signature Resources' stakeholdersReduced monthly costs by more than 75%Initiating a $800,000 non-brokered private placement, designed to give the company more than 12-months of working capital Exercising the previously approved 5:1 share consolidation resulting in more attractive share structure for investorsCanceled all Management Long-Term Incentive Options granted March 9, 2022 Streamlined management with Robert Vallis resigning as President, CEO and Director and Rickardo Welyhorsky resigning his position of COOAppointed Dan Denbow, current Director of the Company, as interim-CEOShare Consolidation The company will commence the 5:1 share consolidation approved by shareholders at the annual general and special meeting of shareholders held on May 26, 2022 and will initiate the process for share consolidation immediately. The share consolidation will result in a much tighter share structure with 55.1 million shares outstanding on a post consolidated basis. The adjusted fully diluted share count is 64.8 million shares outstanding including 2.4 million warrants with an average exercise price of $1.16 per share and 7.2 million options with an average exercise price of $0.45 per share. The Consolidation is subject to final Exchange approval. Non-brokered private placement The non-brokered private placement of up to C$800,000 (the \"Offering\") is being offered at $0.10 per share...