Forward splitThis is an odd one. There appears to be no marketing and no attempt the generate interest in the company - but they decide a forward split will somehow bring liquidity. Hmmm.......
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2018-05-17 10:01 ET - News Release
Mr. Raj Chowdhry reports
ASIABASEMETALS INC. ANNOUNCES CLOSING OF PRIVATE PLACEMENT
AsiaBaseMetals Inc. has completed a non-brokered private placement for aggregate proceeds of $80,000. On May 16, 2018, the company issued 320,000 common shares of the company at a price of 25 cents per share.
The proceeds from the private placement will be used for general working capital, including project due diligence reviews. The private placement is subject to acceptance by the TSX Venture Exchange.
All securities issued in connection with the private placement are subject to a four-month hold period that will expire on Sept. 17, 2018.
Forward split
The company also announces that it intends to forward split its shares on a 1.5:1 basis within approximately the next 60 days, subject to TSX Venture Exchange approval. Further details of the forward split will follow.
Management of the company believes that the forward split will provide increased liquidity to shareholders and promote broader share ownership, which is expected to be beneficial to the company's shareholders.
Multilateral Instrument 61-101
Under the private placement, Henry Park, a director of the company, purchased 80,000 shares through a company he controls and Jason Sutherland, a director of the company, purchased 40,000 shares through a company he controls. Their participation is considered to be a related-party transaction as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the private placement nor the consideration to be received for those securities, insofar as the private placement involves the insiders, exceeds $2.5-million. The company did not file a material change report more than 21 days before the expected closing of the private placement as the details of the private placement and the participation therein by related parties of the company were not settled until shortly prior to closing and the company wished to close on an expedited basis for sound business reasons.
We seek Safe Harbor.