There is hope...a step in the right direction
Cascadero to settle debt owed to estates
2021-02-18 08:25 ET - News Release
Dr. George Gale reports
CASCADERO COPPER ANNOUNCES DEBT SETTLEMENT, PRIVATE PLACEMENT AND STOCK OPTION GRANTS
Cascadero Copper Corp. has entered into certain debt settlement agreements, intends to complete a private placement for gross proceeds of up to $500,000, and has granted stock option grants to certain directors, officers and consultants of the company to purchase up to 15 million common shares in the capital of the company pursuant to the company's stock option plan.
Debt settlements
The company announces that it has entered into debt settlement agreements with creditors to settle the following debts:
- $225,000 due to the estate of Bill McWilliam and estate of Judith Harder pursuant to a loan agreement effective Oct. 3, 2017, consisting of $200,000 in principal and $25,000 in accrued interest thereon, will be settled by cash payments of $100,000 to each of the estates and the estates will forgive the accrued interest of $25,000;
- $423,667 due to the estate of Mr. McWilliam, a director of the company until March, 2020, when he passed away, will be forgiven;
- $307,912 due to the estate of Ms. Harder, a director and chief executive officer of the company until December, 2018, when she passed away, will be forgiven;
- $21,341 due to Argentine Frontier Resources Inc., an entity controlled by the estates, will be forgiven.
Upon payment of the aforementioned amounts, the debt will be fully satisfied and extinguished.
In connection with settlement of the debt, the company has entered into a share transfer agreement with the estates pursuant to which the company will acquire from the estates all of their shares in the capital of Cosmos Minerals Corp. for a nominal amount.
Private placement
The company intends to raise up to $500,000 by way of a non-brokered unit private placement of up to 14,285,714 units at a unit price of 3.5 cents, each unit will consist of one common share at a purchase price of 3.5 cents and one share purchase warrant entitling the holder to purchase one additional common share, up to a total of 14,285,714 warrant shares, at a warrant exercise price of five cents exercisable 24 months from the date of closing. The offering will be made subject to a discretionary waiver of the five-cent minimum pricing requirement from the TSX Venture Exchange. The offering is subject to exchange final acceptance.
Assuming the offering is fully subscribed, the company intends to allocate the net proceeds as follows: approximately $200,000 for payment of the debt and the balance of approximately $300,000 for general working capital purposes.
Although the company intends to use the proceeds of the offering as described above, the actual allocation of net proceeds may vary from the uses set forth above, depending on future operations or unforeseen events or opportunities. If the offering is not fully subscribed, the company will apply the proceeds of the offering to the above uses in priority and in such proportions as the board of directors and management of the company determine is in the best interests of the company.
All securities issued in connection with the offering will be subject to a four-month hold period in accordance with applicable securities laws.
Stock options
The company also announces that it has granted incentive stock options to certain directors, officers and consultants of the company to purchase up to 15 million common shares in the capital of the company pursuant to the company's stock option plan. The options are exercisable on or before Feb. 18, 2026, at an exercise price of five cents per share. The grant of options is subject to regulatory approval.