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Stria Lithium Inc. Provides Further Disclosure Ahead of Shareholder Meeting
OTTAWA , ON / ACCESSWIRE / May 14, 2021 / Stria Lithium Inc. ("Stria" or the "Company") (...
About this update from Stria Lithium Inc.
[{"type":"text","content":"Stria Lithium Inc. Provides Further Disclosure Ahead of Shareholder MeetingOTTAWA, ON / ACCESSWIRE / May 14, 2021 / Stria Lithium Inc. (\"Stria\" or the \"Company\") (TSX-V:SRA), is pleased to provide additional information to its shareholders in advance of the annual and special shareholder meeting scheduled for May 21, 2021 (the \"Meeting\").Further to its news release of April 1, 2021 in which the Company disclosed that on May 25, 2020 it was advanced a loan in the amount of $500,000 (the \"Loan\") from a non-arm's length lender in exchange for a promissory note (the \"Note\") and that the terms of the Loan have been amended to affirm the parties' original intention that the Loan is an unsecured debt of the Company (the Note was amended to remove any reference to security being granted by the Company to the lender), the Company wishes to provide the following clarification and disclosure.While the loan was a \"related party transaction\" for purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), the Loan is exempt from the valuation and minority approval requirements of MI 61-101 in accordance with sections 5.5(b) and 5.7(f) as the Company is not listed on a specified market and the commercial terms of the loan are reasonable and not less advantageous to the Company than if the loan was obtained from a person dealing at arm's length.In the circular for the Meeting mailed to the Shareholders of the Company, the Shareholders are asked to vote on and approve the Loan, though it was granted on May 25, 2020 and it was exempt from the minority shareholder approval requirement of MI 61-101. To that end, the Company will no longer seek minority shareholder approval for the related party Loan.The Shareholders are still asked to vote on the resolution approving the conversion of the Loan to Shares of the Company and the creation of a new \"control person\" (the \"Transaction\").By way of further background to the proposed Transaction, the Company is pleased to provide the following information related background to and justification for the Transaction:On May 25, 2020, the Chairman of the Board loaned Stria $500,000, through his holding company, to fund general operating expenses. At the time the Loan was advanced, there were no other alternatives to fund Stria's op...