News
Greenbriar to receive 25.8M Captiva shares for debt
2021-12-21 20:39 ET - News Release
Mr. Jeff Ciachurski reports
GREENBRIAR CAPITAL CORP. ENTERS INTO SHARES FOR DEBT SETTLEMENT WITH CAPTIVA VERDE WELLNESS CORP.
Greenbriar Capital Corp. has entered into a shares-for-debt agreement to settle certain debt owing to the company from Captiva Verde Wellness Corp.
Summary of debt owing to Greenbriar
On Aug. 10, 2020, the company entered into an option and joint venture agreement with Captiva with respect to Captiva's right to earn a 50-per-cent net profit interest in the company's Tehachapi property.
In connection with the option and joint venture agreement, Greenbriar financed certain permitting and development costs for the Sage Ranch project (Tehachapi property) on behalf of Captiva, resulting in a trade payable owing from Captiva to Greenbriar in the amount of $1,971,000.
Captiva is settling $1.29-million of the Greenbriar payable through a shares-for-debt settlement pursuant to which Captiva will issue to Greenbriar a total of 25.8 million common shares at a deemed price of five cents per common share.
Greenbriar expects that the rest of the Greenbriar payable (being $681,000) will be evidenced by a promissory note issued by Captiva to Greenbriar. It is expected that the promissory note will accrue interest at the rate of 8 per cent per annum and will have a term of 24 months.
Greenbriar and Captiva are non-arm's-length parties as Captiva and Greenbriar have common directors and officers.
Greenbriar currently holds 10,687,500 Captiva common shares. As a result of the issuance of the Captiva debt shares, Greenbriar expects to hold 19.99 per cent of the number of common shares Captiva has issued and outstanding. The Captiva debt shares will be subject to a statutory hold period of four months plus one day from the date of issuance. The issuance of the Captiva debt shares is subject to the approval of the TSX Venture Exchange.
About Greenbriar Capital Corp.
Greenbriar is a leading developer of renewable energy and sustainable real estate. With long-term, high-impact, contracted sales agreements in key project locations and led by a successful, industry-recognized operating and development team, Greenbriar targets deep-valued assets directed at accretive shareholder value.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.