News out but not posted on Prev website? PreveCeutical Announces Debt Settlement and Conversion of Debt
Friday, May 22, 2020, 5:04 PM ET
Vancouver, British Columbia--(Newsfile Corp. - May 22, 2020) - PreveCeutical Medical Inc. (CSE: PREV) (OTCQB: PRVCF) (FSE: 18H) (the "Company" or "PreveCeutical") announces that it has issued 95,600,253 common shares without par value in its capital (each, a "Share") to various arm's length creditors of the Company at a deemed issuance price of $0.023 per Share.
The Company has entered into a shares for debt settlement agreement with an arm's length supplier (the "Supplier"), whereby the Company agreed to issue to the Supplier, and the Supplier agreed to accept 8,643,731 Shares as full and final payment of the Company's indebtedness to the Supplier in the total amount of $198,805.82 (the "Debt Settlement"). All Shares issued pursuant to the Debt Settlement are subject to a hold period of four months and one day in Canada.
The Company also entered into two assignment and assumption agreements, whereby certain arm's length assignees (the "Assignees") acquired all of Stephen Van Deventer and Kimberly Van Deventer's right, title, interests and obligations in and under a convertible credit facility agreement dated effective December 9, 2016, as amended, as to the aggregate principal amount of $1,728,810.75 and the accrued interest thereon in the aggregate amount of $271,189.25 (the "Assigned Amounts"). The Assignees have elected to convert the Assigned Amounts into an aggregate of 86,956,522 Shares (the "Assignment Conversion"). The Shares issued in connection with the Assignment Conversion will not be subject to a hold period in Canada.
None of the foregoing securities have been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.