2020-10-30 20:23 ET - News Release
Dr. Patrick Gray reports
PASCAL ANNOUNCES SHARES FOR DEBT SETTLEMENTS
Pascal Biosciences Inc. has entered into a debt settlement agreement with certain non-arm's-length creditors of the company to settle an aggregate of $230,765 of debt in consideration for the issuance of an aggregate of 1,648,321 common shares of the company at a deemed price of 14 cents per share.
The shares-for-debt transaction constitutes a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) as insiders of the company will receive 1,648,321 common shares of the company in connection with the debt settlement. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the shares for debt transaction with the insider does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101.
The board and management of Pascal believe that the proposed debt settlement is in the best interests of the company because it allows the company to preserve its funds for operations.
The debt settlement will not create a new control person holding more than 20 per cent of the issued and outstanding ordinary shares of the company. The debt settlement is subject to the acceptance of the TSX Venture Exchange. The common shares issued pursuant to the debt settlement will be subject to a statutory four-month-and-one-day hold period.
About Pascal Biosciences Inc.
Pascal is a biotechnology company, targeting innovative therapies for serious diseases, including COVID-19. Pascal is also developing treatments for cancer with targeted therapies for acute lymphoblastic leukemia and cannabinoid-based therapeutics. Pascal's leading portfolio also comprises a small-molecule therapeutic, PAS-403, that is advancing into clinical trials for the treatment of glioblastoma, and PAS-393, an immuno-stimulatory cannabinoid to be used in combination with checkpoint inhibitor therapy.