Lightstream Resources Ltd. LSTMF

RE:News

[Pancho2]

https://www.lightstreamresources.com/news/news-releases.cfm?newsReleaseAction=view&releaseId=203 -  29/12/16

The Sale Transaction represents the outcome of the sale process carried out by the Company as part of its restructuring proceedings under the Company Creditors' Arrangement Act commenced in September 2016.
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The Sale Transaction 
July 13, 2016

In the event that the CBCA Plan Transaction is not approved or is otherwise unable to be completed, as noted above, the Company has agreed to undertake a CCAA Sale Transaction. As part of the proceedings under the CCAA, the members of the Ad Hoc Committee will make (or direct) a credit bid (the "Secured Credit Bid") for the full amount of the claims outstanding in respect of the Secured Notes, which Secured Credit Bid may serve as a stalking horse transaction in the SISP. In the event that the Secured Credit Bid is the successful bid, the entity through which the Secured Credit Bid is completed will commit to replicate any consideration that was offered to the Unsecured Noteholders or Shareholders in the CBCA Plan Transaction as part of the Secured Credit Bid, provided that the consideration will only be available to the Unsecured Noteholders or Shareholders if they, as a class, approved the CBCA Plan Transaction at the requisite levels at the meetings held by Lightstream to approve the CBCA Plan Transaction
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The Consideration

• existing Shareholders will hold a total of 2.25% of the then-outstanding Common Shares and existing Shareholders will also receive Series 2 warrants equal to 7.75% of the total number of issued Common Shares (the Series 2 warrants will be exercisable for a period of five years following the effective date of the CBCA Plan Transaction and have a sliding scale exercise price between CDN$12.88 and CDN$14.96),