Chilean Metals Inc. V.CMX

CMX Shares For Debt - Severance Pay??

[LuckyLou186]

2018-05-14 16:24 ET - Shares for Debt
The TSX Venture Exchange has accepted for filing Chilean Metals Inc.'s proposal to issue 1,523,423 shares in consideration of severance pay pursuant to two settlement agreements both dated March 9, 2018.
Insiders:  Patrick Cruickshank 856,756; Gary Lohman 666,667
An additional share issuance to Mr. Cruickshank in the amount of 476,577 shares under the settlement agreement is subject to disinterested shareholder approval.

Did Patrick and Gary resign or were they fired?
The only other reason for severance pay is that they are no longer employed due to the bankruptcy or insolvency of their employer (CMX);

According to Ontario Employment Standards Act

Severance pay
“Severance pay” is compensation that is paid to a qualified employee who has their employment “severed.” It compensates an employee for losses (such as loss of seniority) that occur when a long-term employee loses their job.

When severance occurs
A person's employment is “severed” when their employer:

• dismisses or stops employing the employee, including where an employee is no longer employed due to the bankruptcy or insolvency of their employer;
• “constructively” dismisses the employee and the employee resigns in response within a reasonable time;
• lays the employee off because all of the business at an establishment closes; or
• gives the employee written notice of termination and the employee resigns after giving two weeks' written notice, and the resignation takes effect during the statutory notice period.