Dividend On Preferred SharesThis announced today by Replicel:
REPLICEL LIFE SCIENCES ANNOUNCES INTENTION TO PAY DIVIDEND ON PREFERRED SHARES
RepliCel Life Sciences Inc. intends to pay accrued dividends of $53,367.13 outstanding on the Class A preferred shares in 508,253 common shares of the company at a price of 10.5 cents per share.
The proposed dividend payment is subject to the approval of the TSX Venture Exchange.
All securities issued in connection with the dividend payment will be subject to a statutory hold period expiring four months and one day after issuance of the securities.
David Hall, Peter Lewis and Andrew Schutte are among the 16 investors who participated in the 2019 private placement of Class A preferred shares -- all of whom will be receiving a dividend payment. These three are each considered to be a related party within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, and each issuance is considered to be a related party transaction within the meaning of MI 61-101, but each issuance will be exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in Section 5.5(b) as the company's shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the shares to be issued to each related party does not exceed 25 per cent of the company's market capitalization.
For a company on life support financially this boggles the mind.