Cheap paper makes the world go around.....just sayin. Cheers!
Bullish sentiment in the Gold Sector .... Juniors to rally.... JMHO
Galileo to settle $535,350 of debt with 10.7M shares
2020-08-13 13:38 PT - News Release
Mr. John Kanderka reports
GALILEO EXPLORATION ANNOUNCES SHARES FOR DEBT TRANSACTIONS
Galileo Exploration Ltd. has entered into shares-for-debt agreements to satisfy an aggregate of $535,350.21 of the company's outstanding debts. The Company has reached agreements with certain of its creditors who have provided services to the Company to extinguish, or partially extinguish, certain of the Company's outstanding debts owing to them in exchange for the issuance of common shares in the capital of the Company ("Shares"). The creditors include certain related parties of the Company, including John Kanderka, Galileo's Chief Executive Officer and a Director, Wes Adams, Galileo's Chief Financial Officer and a Director, Marc Blythe, a Director and John Adams, a holder of greater than 10% of the issued and outstanding Shares (collectively, the "Related Parties"). Every other creditor is an arm's length party who has provided consulting services to the Company.
An aggregate of 10,707,005 Shares at a deemed price of $0.05 per Share are proposed to be issued to the creditors which includes an aggregate of 9,288,493 Shares to be issued to the Related Parties. An aggregate of 2,015,535 Shares are proposed to be issued to John Kanderka, representing $100,776.75 in full satisfaction of the amount owing for services rendered in his capacity as the Chief Executive Officer and for expenses paid on behalf of the Company. An aggregate of 3,927,473 Shares are proposed to be issued to the Wes Adams, representing $196,373.63 in partial satisfaction of the amount owing for services rendered in his capacity as the Chief Financial Officer, for loans extended to the Company and for expenses paid on behalf of the Company. An aggregate of 797,540 Shares are proposed to be issued to Marc Blythe, representing $39,877.02 in full satisfaction for expenses paid on behalf of the Company. An aggregate of 2,547,945 Shares are proposed to be issued to John Adams, representing $127,397.26 in full satisfaction of loans extended to the Company.
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 shares for debt transactions involving the Related Parties 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(b) and 5.7(1)(e) of MI 61-101, respectively, as, respectively, the Company is not listed on a specified exchange and the Company is experiencing serious financial difficulty. The participation by the Related Parties in the shares for debt transactions has been approved by directors of the Company who are independent in connection with such transactions. A material change report will be filed less than 21 days before the closing date of the transactions contemplated by this news release. The Company believes this shorter period is reasonable and necessary in the circumstances as the Company wishes to improve its financial position by reducing its liabilities as soon as possible.