PacRim Resources to issue 6.03 million shares for debt
2003-09-04 07:42 MT - News Release
Mr. John Bottomley reports
PACRIM ANNOUNCES DEBT SETTLEMENT AND PRIVATE PLACEMENT
PacRim Resources has entered into agreements with three arm's-length and two non-arm's-length parties to issue a total of 6,034,787 common shares with an effective price of 22.5 cents per share, being a 300-per-cent premium to current market prices, to settle $1,357,827.17 in advances made to PacRim by these parties. The related party component of this debt settlement is exempt from the valuation and minority shareholder approval requirements of OSC Rule 61-501 by virtue of the exemptions contained in sections 5.6(2) and 5.8(3) of the rule in that the fair market value of the consideration for the securities of PacRim to be issued does not exceed 25 per cent of its market capitalization. The directors of PacRim have valued the debt being settled at $452,609 with the related party component being valued at $175,166.
PacRim has also negotiated a private placement of 500,000 common shares priced at 17.65 cents per share with an arm's-length party.
Further to news in Stockwatch on Aug. 5, 2003, PacRim has completed a debt settlement with two arm's-length parties on the issuance of 1,309,087 common shares. The shares will be legended and restricted from trading until Aug. 19, 2004.
Both of these transactions are subject to regulatory approval by the TSX Venture Exchange. |
