Papuan Precious Metals Corp. Announces the Plan of Arrangement
PAPUAN PRECIOUS METALS CORP. (the "Company") (TSX VENTURE:PAU). Further to the
Company's news release dated June 2, 2014, the Company announces the plan of
arrangement (the "Arrangement") with its wholly owned subsidiary Pioneer Pacific
Financial Corp. ("Subsidiary"). Pursuant to the Arrangement, the Company will
transfer to the Subsidiary the Letter Agreement regarding the acquisition of a
Medical Marijuana dispensary in the State of Colorado and will provide to the
Subsidiary a one year interest free loan to help finance the acquisition.
As a result of the Arrangement, for every four shares of the Company held by the
Company's shareholder at the close of business on the share distribution record
date, shareholders will receive one share of the Subsidiary. The record date
will be determined by the board of directors of the Company and announced at a
later date. The Company will be responsible for the costs associated with the
The Arrangement will have to be approved by a special resolution of the
shareholders of the Company, the TSX Venture Exchange and the Supreme Court of
British Columbia, and will have to be filed with the Corporate Registry of
British Columbia before it becomes effective.
The details of the Arrangement will be provided in the management information
circular, which will be mailed to the shareholders of the Company and will be
available on www.sedar.com under the Company's profile.
ON BEHALF OF THE BOARD
Dev Randhawa, Chairman & CEO
Completion of the transaction is subject to a number of conditions, including
Exchange acceptance and disinterested Shareholder approval. The transaction
cannot close until the required Shareholder approval is obtained. There can be
no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the Management Information
Circular to be prepared in connection with the transaction, any information
released or received with respect to the acquisition may not be accurate or
complete and should not be relied upon. Trading in the securities of Papuan
Precious Metals Corp. should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the proposed
transaction and has neither approved nor disapproved the contents of this press
Cautionary Statement: Certain information contained in this press release
constitutes "forward-looking information", within the meaning of Canadian
legislation. Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or variations
of such words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur", "be achieved" or
"has the potential to". Forward looking statements contained in this press
release may include statements regarding the potential spin-out and acquisition
which involve known and unknown risks and uncertainties which may not prove to
be accurate. Actual results and outcomes may differ materially from what is
expressed or forecasted in these forward-looking statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties surrounding
FOR FURTHER INFORMATION PLEASE CONTACT:
Papuan Precious Metals Corp.