Paleo Resources Announces Closing of Shares for Debt Transaction
March 30 2021 - 4:32PM
Paleo Resources, Inc. (“Paleo” or the “Corporation”) (TSX-V: PRE,
OTCQB: PRIEF) announced today that, further to its March 10, 2021
news release, it settled outstanding indebtedness in the aggregate
amount of US$2,096,618.63 (CDN$2,649,496.96 at an assumed exchange
rate of CDN$1.2637 to US$1.00) owing to Roger S. Braugh, Jr.
(“
Braugh”), a director and officer of Paleo, and
Chris Pettit & Associates PC, controlled by Christopher J.
Pettit, a director of Paleo, as trustee of a Trust (the
“
Trust”), through the issuance of an aggregate of
132,474,848 common shares of the Corporation at a deemed price of
CDN$0.02 per share (the “
Debt Settlement”). The
common shares issued in connection with the Debt Settlement are
subject to a hold period that expires on July 31, 2021.
As noted above, Roger S. Braugh, Jr. is a
director and officer of Paleo and Christopher J. Pettit, is a
director of Paleo and, accordingly, the Debt Settlement is a
related party transaction for the purposes of TSX Venture Exchange
Policy 5.9 and Multilateral Instrument 61-101 (the “Related Party
Policies”). Paleo has determined that exemptions from the various
requirements of the Related Party Policies are available in
connection with the Debt Settlement (Formal Valuation - Issuer Not
Listed on Specified Markets; Minority Approval - Financial
Hardship).
Each of Braugh and the Trust acquired 66,237,424
common shares (representing 14.86% of the issued and outstanding
common shares). Prior to the offering, Braugh held 68,740,714
common shares, or approximately 21.95% of the total issued and
outstanding common shares. Braugh now controls 134,978,138
common shares, or approximately 30.29% of the total issued and
outstanding common shares, and a convertible secured debenture in
the principal amount of CDN$323,277. Assuming conversion of the
debenture, Braugh would own 137,672,113 common shares, or
approximately 30.71% of the total issued and outstanding common
shares. Prior to the offering, Chris Pettit & Associates PC
controlled 55,225,714 common shares, or approximately 17.63% of
the total issued and outstanding common shares. Chris Pettit &
Associates PC now controls 121,463,138 common shares, or
approximately 27.25% of the total issued and outstanding common
shares, and a convertible secured debenture in the principal amount
of CDN$323,277. Assuming conversion of the debenture, Chris Pettit
& Associates PC would control 124,157,113 common shares, or
approximately 27.69% of the total issued and outstanding common
shares.The acquisition of the common shares by Braugh and the
Trust were made for investment purposes. Each of Braugh and the
Trust may increase or decrease their investment in Paleo depending
on market conditions or any other relevant factors. The head
office address for Paleo is 716 S. Frio St., Suite 201, San
Antonio, Texas 78207. The address for Braugh is 7 Hewit Dr., Corpus
Christi, Texas 78404. The address for Chris Pettit & Associates
PC is 11902 Rustic Lane, San Antonio, Texas 78230.
Neither
the
TSX
Venture
Exchange
nor
its
Regulation
Services
Provider
(as the
term
is
defined
in
the
policies
of the
TSX
Venture
Exchange)
accepts
responsibility
for the
adequacy
or accuracy
of
this
release.
Paleo Resources, Inc. is an oil and natural gas
and mineral exploration company headquartered in Calgary, Alberta,
with executive offices in Houston, Texas. The Corporation's common
shares are listed on the TSX Venture Exchange under the trading
symbol "PRE" and on the OTCQB as "PRIEF".
For further information please contact:
Roger S. Braugh, Jr.Interim Chief Executive Officer and Chairman
of the Board Email: rbraugh@paleooil.com
Paleo Resources, Inc.716 S. Frio St. Suite 201San Antonio, Texas
78207Telephone: 254-699-0975
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