Private shares issued? Why Why after the share price has flopped to nothing is our company issuing 1,666,667 more shares in private placement. ......with company still holding $7.4 million cash, this seems odd......timing seems really off. What is the board of directors doing?
Experion Private Placement Financing
Experion Holdings Ltd is pleased to announce a private placement of 1,666,667 common shares at a price of $0.15 per share for gross proceeds of $250,000 from Mr. Jay Garnett, the CEO of the Company. The private placement investment is subject to acceptance for filing by the TSX Venture Exchange and the proceeds of the Private Placement will be used for general working capital.
The placement to Mr. Garnett constitutes a "related party transaction" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61101 Protection of Minority Security Holders in Special Transactions ("MI 61101") adopted in the Policy. The Company will rely on exemptions from the formal valuation and minority shareholder approval requirements of MI 61101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61101 in respect of Mr. Garnett's participation in the placement 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, exceeds 25% of the Company's market capitalization (as determined under MI 61-101). Further details will be included in a material change report to be filed by the Company. The material change report will not be filed more than 21 days prior to closing of the placement due to the timing of the announcement of the private placement and closing occurring in less than 21 days.