ProAm Explorations to roll back shares one for three ProAm Explorations to roll back shares one for three
2019-09-30 11:02 MT - News Release
Mr. Donald MacDonald reports
ProAm Explorations Corp.'s board of directors has approved a consolidation of the company's share capital on a one-new-for-three-old basis. The company currently has 18,404,143 common shares issued and outstanding and accordingly, upon completion of the consolidation, there will be approximately 6,134,714 common shares outstanding.
The share consolidation is being proposed in order to allow the company greater flexibility in future financings. ProAm also announces its intent to settle $90,957.33 of its debt owed to Glenco-MacDonald Holdings Ltd. through the issuance of 1,819,146 postconsolidated common shares at a price of five cents per share. Glenco-MacDonald is controlled by Donald MacDonald, the chief executive officer, president and a director of the company. The share consolidation, change of name and debt settlement are subject to approval of the TSX Venture Exchange.
Due to insider participation in the debt settlement, it is considered a related-party transaction within the meaning of Multilateral Instrument 61-101. The participation is exempt from the need to obtain minority shareholder approval and a formal valuation on the basis that the company is in serious financial difficulty and the settlements with the interested parties are designed to improve the financial position of the company; and neither the company nor, to the knowledge of the company after reasonable inquiry, the interested parties, have knowledge of any material information concerning the company or its securities that has not been generally disclosed.
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