Business
Visionary Gold Corp. Announces Shares for Debt Transaction
Vancouver, British Columbia--(Newsfile Corp. - May 8, 2023) - Visionary Gold Corp. (TSXV: VIZ) ("...
About this update from Visionary Metals Corp
[{"type":"text","content":"Visionary Gold Corp. Announces Shares for Debt TransactionVancouver, British Columbia--(Newsfile Corp. - May 8, 2023) - Visionary Gold Corp. (TSXV: VIZ) (\"Visionary\" or the \"Company\") is pleased to announce that it has entered into a shares for debt agreement to satisfy $474,286.44 of the Company's debts. The Company has reached an agreement with the Company's Chief Executive Officer and Director, Wesley Adams (\"Adams\") to extinguish, the Company's outstanding debt owing to him in exchange for the issuance of units of the Company (each, a \"Unit\") at a deemed price of $0.07 per Unit. Each Unit is comprised of one common share of the Company (each, a \"Unit Share\") and one half of one common share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant entitles the holder thereof to acquire one common share of the Company (each, a \"Warrant Share\" and, together with the Unit Shares, the \"Shares\") at a price of $0.14 for a period of 36 months from the closing date of the transaction (the \"Transaction\").An aggregate of 6,775,521 Unit Shares will be issued to Adams, with a further 3,387,760 Warrant Shares issuable upon exercise of the Warrants, for a total of 10,163,281 Shares issuable to Adams pursuant to the Transaction. The Company determined to satisfy the indebtedness with Shares in order to preserve its cash for development of its business. Issuance of the Shares is subject to approval by the TSX Venture Exchange (the \"Exchange\"). The Shares issued pursuant to the shares for debt agreements will be subject to a four month plus one day hold period pursuant to applicable securities legislation.The Transaction will constitute a \"related party transaction\" under Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (\"MI 61-101\"). The Company intends to rely on the exemptions from the valuation and the minority approval requirements of MI 61-101 provided for in subsections 5.5(a) and 5.7(1)(e) of MI 61-101, respectively, as the fair market value of the subject matter of, and the debt settled in the Transaction, does not represent more than 25% of the Company's market capitalization, as determined in accordance with MI 61-101. The Transaction has been approved by directors of the Company who are independent in connection with such Transaction. A material change ...