RE:RE:RE:Algernon and Gromax Capital.....just curious ? VANCOUVER, April 28, 2020 /CNW/ - GrowMax Resources Corp. (TSXV: GRO) ("GrowMax" or the "Company") announced that it has received conditional approval from the TSX Venture Exchange (the "TSXV") of the previously announced proposed change of business from mineral exploration to an investment issuer (the "Proposed COB") under the policies of the TSXV. The Proposed COB was announced by GrowMax in a press release issued on July 11, 2019 and further described in its press release issued on August 27, 2019.
Final approval of the Proposed COB by the TSXV remains subject to a number of conditions including the appointment of two additional independent directors. Trading in the Company's shares will remain halted until the TSXV conditions to allow trading to resume have been satisfied. The Company intends to file the filing statement by the end of this month and complete the Proposed COB on or around May 15, 2020.
In accordance with TSXV policy requirements, the Company wishes to provide details of the following cash investments made by the Company under subscription agreements with the investees:
Algernon Pharmaceuticals Inc.
On November 1, 2019, the Company acquired 5,882,352 units of Algernon Pharmaceuticals Inc. ("Algernon") at $0.085 per unit for a total cost of $500,000 pursuant to a public offering of units of Algernon of approximately $2.07 million units. Each unit comprised of one common share and one common share purchase warrant entitling the holder to purchase one additional common share at an exercise price of $0.12 per common share until May 1, 2022.
On February 20, 2020, the Company acquired an additional 2,000,000 units of Algernon at $0.085 per unit for a total cost of $170,000 pursuant to a non-brokered private placement of units of Algernon. Each unit comprised of one common share and one common share purchase warrant entitling the holder to purchase one additional common share at an exercise price of $0.12 per common share until August 20, 2022.
The investments in Algernon involved a non-arm's length party as Michael Sadhra, the Company's CFO and director is also Algernon's CFO and director. He declared his interest and abstained from voting in connection to the investments in Algernon. The investments, however, do not fall within the definition of "related party transaction" under Multilateral Instrument 61-101 ("MI 61-101").