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Currie Rose Announces Issuance of Shares for Debt Settlement
Toronto, Ontario--(Newsfile Corp. - October 22, 2021) - Currie Rose Resources Inc. (TSXV: CUI)...
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[{"type":"text","content":"Currie Rose Announces Issuance of Shares for Debt SettlementToronto, Ontario--(Newsfile Corp. - October 22, 2021) - Currie Rose Resources Inc. (TSXV: CUI) (\"Currie\" or the \"Company\") announces that it intends to settle certain outstanding accounts payable in the aggregate amount of $200,000 (the \"Debt\") owing to certain creditor (the \"Creditor\") through the issuance of up to 4,000,000 common shares of the Company (the \"Settlement Shares\") at a deemed price of $0.05 per common share (the \"Shares for Debt Transaction\").The Debt was accrued pursuant to consultant services agreement (the \"Consulting Agreement\") entered in July 2016 between Currie Rose Resources and a company controlled by the President and Chief Executive Officer of the Company (\"Consultant\"). The Consulting Agreement provide for a monthly fee payable to the Consultant (the \"Service Fees\") of C$10,000. No new control person of the Company will be created pursuant to the Shares for Debt Transaction; however, one new insider of the Company will be created by virtue of holding over 10% of the Company's issued and outstanding shares upon completion of the Shares for Debt Transaction. This is a non-arm's length transaction.The issuance of the Settlement Shares to the Consultant constitutes a \"related party transaction\" as such term is defined by Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company was exempt from the MI 61-101 valuation and minority approval requirements for related party transactions in connection with the Shares for Debt Transaction under sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves the Consultant, exceeds 25% of the Company's market capitalization (as determined under MI 61-101).The Company is proposing to issue the Settlement Shares to preserve cash to fund future operations. The Company's board of directors believes that the Shares for Debt Transaction is necessary to provide the Company with a clean balance sheet to attract new capital and to acquire new interests.The Company obtained disinterested shareholder approval of the Shares for Debt Transaction on October 21, 2021. ...