RE:Share consolidation = DEATH of FCUDreaminthedream wrote:
Share consolidation plus $10 million loan plus offtake agreement means the death of FCU.
There is no recovering from the mess FCU is in. Share consolidation is the final step to oblivion. It is an admission of failure and it is time to get the company affairs in order as it heads to the cemetery.
I wonder if the end game is to convert the $10 million dollarloan into shares down the road, something like what was announced late lastnight in a different company that Dev has an interest in. I see that it almost doubled today from his price..
Here is the news release:
GALLAGHER SECURITY CORP.
Early Warning Report Filed Pursuant to National Instrument 62-103
June 4, 2020 – Gallagher Security Corp. (the “Company”) (CSE:GLL): This news release is being disseminated as required by National Instrument 62-103 The Early Warning System and Related Take Over Bids and Insider Reporting Issues in connection with the filing of an early warning report (the “Early Warning Report”) regarding the acquisition of common shares of the Company by RD Capital Inc. (the “Acquiror”), a company controlled by Devinder Randhawa, a director of the Company.
The Acquiror, on June 4, 2020, acquired 3,124,160 common shares of the Company (the “Shares”) pursuant to a debt settlement agreement with the Company dated June 4, 2020, pursuant to which $156,208 of debt was settled in consideration for the issuance of the Shares at a deemed price of $0.05 per Shares.
Prior to the acquisition, the Acquiror had beneficial ownership and control of 5,005,822 common shares of the Company and and 1,834,500 warrants to purchase common shares of the Company, representing approximately 40.06% of the Company’s issued and outstanding common shares on an undiluted basis as of such time. After completion of the acquisition of the Shares, the Acquiror now has beneficial ownership and control of 8,129,982 common shares of the Company. The 8,129,982 common shares represent approximately 52% of the 15,620,918 issued and outstanding common shares of the Company, resulting in an increase by 11.94% to the Acquiror’s holdings after the completion of the acquisition of the Shares.
The Acquiror is owned and controlled by Mr. Randhawa as a result of which Mr. Randhawa is deemed a joint actor of the Acquiror. In addition, Mr. Devinder Randhawa personally owns and controls 671,912 common shares of the Company and 62,982 warrants to purchase common shares of the Company. After completion of the acquisition of the Shares, Mr. Devinder Randhawa and the Acquiror jointly own and control in the aggregate 8,801,894 common shares which represents approximately 56.3% of the 15,620,918 issued and outstanding common shares, and on a partially diluted basis, 10,699,376 common shares which represents approximately 61.1% of the total number of issued and outstanding common shares of the Company.
The Shares acquired by the Acquiror are held for investment purposes. The Acquiror will review its investment in the Company’s securities on a continuing basis and such holdings may be increased or decreased in the future. The Acquiror may in the future acquire or dispose of securities of the Company, through the open market, privately or otherwise, as circumstances or market conditions dictate.
A copy of the Early Warning Report filed under applicable securities laws is available under the Company’s profile on SEDAR (www.sedar.com).
For further information, please contact:
Gallagher Security Corp. Phone: 1-250-868-8177