Canadian Spirit Resources Inc. Announces Third Quarter 2020 Financial Results and Grant of Stock Option
November 27 2020 - 7:51PM
Canadian Spirit Resources Inc. (“CSRI” or the
“Corporation”) (TSXV:SPI) (OTCBB:CSPUF)
announces the release of its interim financial results and
Management Discussion and Analysis (“MD&A”), for the nine month
period ended September 30, 2020. In addition, CSRI announces that
it has granted incentive stock options to acquire an aggregate of
2,800,000 common shares of the Corporation (“Common Shares”) for a
price of $0.10 per share for a period of five years in accordance
with the terms and conditions of the Corporation’s Stock Option
Plan.
Third Quarter
2020This news release summarizes information contained in
the unaudited interim condensed financial statements and MD&A
for the three and nine months ended September 30, 2020, and should
not be considered a substitute for reading these full disclosure
documents which are available on SEDAR at www.sedar.com or the
Corporation’s website at www.csri.ca.
The following summarizes certain selected
financial data for the three and nine months ended September 30,
2020:
(all amounts are presented in Canadian dollars, unless
otherwise indicated)
|
|
Three months endedSeptember 30, |
Nine months endedSeptember 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
Operating costs |
|
(59,363 |
) |
|
(94,928 |
) |
|
(198,568 |
) |
|
(236,013 |
) |
|
|
|
|
|
|
|
Operating netback |
$ |
(59,363 |
) |
$ |
(94,928 |
) |
$ |
(198,568 |
) |
$ |
(236,013 |
) |
|
Other income and gains |
|
44 |
|
|
4,905 |
|
|
23,203 |
|
|
77,821 |
|
|
Other Expenses |
|
(286,856 |
) |
|
(516,611 |
) |
|
(942,020 |
) |
|
(1,368,807 |
) |
|
Settlement of claims |
|
- |
|
|
- |
|
|
(514,552 |
) |
|
- |
|
|
|
|
|
|
|
|
Net comprehensive loss for the period |
$ |
(346,175 |
) |
$ |
(606,634 |
) |
$ |
(1,631,937 |
) |
$ |
(1,526,999 |
) |
The Corporation’s loss and comprehensive loss
for the nine months ended September 30, 2020 was $1,631,937
(September 30, 2019 - $1,526,999). When compared to the prior
period the $104,939 increased loss was due mainly to the accrual of
$514,552 in settlement of claims which the Corporation expensed in
the period. The Corporation terminated the employment of two of the
Corporation’s executive officers in April 2020 and is negotiating
settlements of the $514,552 commitment. The Company may or may not
be successful in negotiating a lessor amount and as such accrued
the $514,552 in the Statements of Loss and Comprehensive Loss
during the period ended September 30, 2020.
|
|
As of September 30, |
As of December 31, |
|
|
2020 |
2019 |
|
|
|
|
|
Working Capital: |
|
|
|
Current assets |
$ |
650,784 |
|
$ |
703,063 |
|
|
Current liabilities (including debt of $610,000) |
$ |
(1,307,465 |
) |
$ |
(114,738 |
) |
|
Working capital |
$ |
(656,681 |
) |
$ |
588,325 |
|
|
Total assets |
$ |
38,197,888 |
|
$ |
38,595,074 |
|
|
Total debt |
$ |
610,000 |
|
$ |
- |
|
|
Shareholders' equity |
$ |
34,762,435 |
|
$ |
36,377,845 |
|
|
Number of common shares outstanding |
|
196,177,583 |
|
|
196,177,583 |
|
STOCK OPTION GRANT
The Corporation granted to certain directors and
executive officers of the Corporation incentive stock options to
purchase a total of up to an aggregate of 2,800,000 Common Shares
pursuant to the terms of the Corporation's Stock Option Plan. The
stock options vest as to one-quarter immediately, with one-quarter
vesting on each of the dates six months, 12 months and 18 months
subsequent to the effective date of the grant. All the stock
options have a term of five years and may be exercised at a price
of $0.10 per share. The grant of options will result in a total of
4,650,000 stock options outstanding at a weighted average exercise
price of $0.09 per stock option.
ABOUT CSRI
CSRI is a natural resources company focusing on
the identification and development of opportunities in the
unconventional gas sector of the energy industry. For further
information please visit the Corporation’s website at
www.csri.ca.
For further information, please contact:Canadian
Spirit Resources Inc.Telephone (403) 618-2113Louisa DeCarlo
(louisa@danrichresources.com)
The corporate information contained in this news
release may contain forward-looking forecast information. The
reader is cautioned that assumptions used in the preparation of
such information, although considered reasonably accurate by CSRI
at the time of preparation, may prove to be incorrect. The actual
results achieved during the forecast period will vary from the
information provided herein and the variations may be material.
Consequently, there is no representation by CSRI that actual
results achieved during the forecast period will be the same in
whole or in part as those forecast.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
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