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South Pacific Metals Corp. Announces Proposed Shares for Debt Transaction with Convertible Debenture Holders
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION...
About this update from South Pacific Metals Corp.
[{"type":"text","content":"South Pacific Metals Corp. Announces Proposed Shares for Debt Transaction with Convertible Debenture HoldersNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION, DISSEMINATION, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / March 14, 2024 / South Pacific Metals Corp. (TSX-V:SPMC)(FSE:6J00) (\"SPMC\" or the \"Company\") announces, further to its news release dated February 23, 2024, it plans to complete a shares for debt transaction to settle the outstanding principal amount of C$1,270,000 plus accrued interest of C$79,726.63 owed to the 10% secured convertible debenture holders (the \"2023 Debentures\"). In total, the Company plans to issue 6,748,633 common shares of the Company at a price of C$0.20 per share to settle total indebtedness of C$1,349,726.63 (the \"Shares for Debt Transaction\").As previously announced on February 23, 2024, the Company had intended to issue new convertible debentures to replace the 2023 Debentures. However, the Company has now decided to settle the outstanding indebtedness under the 2023 Debentures through the Shares for Debt Transaction. The Company anticipates that the Shares for Debt Transaction will result in a stronger balance sheet with the elimination of the indebtedness owed under the 2023 Debentures.All securities issued in connection with the Shares for Debt Transaction are subject to a four month and one day hold period from the date of issuance in accordance with the Canadian securities law. The Shares for Debt Transaction is subject to final acceptance of the TSX Venture Exchange.Snowfields Wealth Management Limited (\"Snowfields\"), which is controlled by Geoffrey Lawrence, a director of the Company, and Dain Currie, a director of the Company, are insiders of the Company. Snowfields and Mr. Currie hold $291,138.88 and $100,000, respectively, of the 2023 Debentures. As a result of the Shares for Debt Transaction, Snowfields will be issued 1,550,752 common shares to settle the principal amount of $291,138.88 plus accrued interest of $19,011.53, and Mr. Currie will be issued 526,503 common shares to settle the principal amount of $100,000 plus accrued interest of $5,300.55. Accordingly, the insider participation in the Shares for Debt Transaction constitutes a \"related party transaction\" for the Company withi...