Yahoo Finance Sona Announces Debt Settlements with Creditors
Halifax, Nova Scotia--(Newsfile Corp. - July 16, 2019) - Sona Nanotech Inc. (CSE: SONA) ("Sona" or the "Company") has arranged a debt settlement of $797,953 in amounts owed to certain non-arm's length creditors and included in accounts payable to related parties in the financial statements of Sona (the "Debts"). The Debts will be settled in full by the issuance to these creditors of an aggregate of 3,199,812 common shares at a deemed price of $0.25 per share. The Company also arranged a debt conversion of $137,093 in debt owed to an arm's length creditor as shown in the financial statements of Sona (the "Convertible Debt"). The Convertible Debt will be settled in full based on its conversion price of $0.158 per share resulting in the issuance of 867,677 common shares to the debt holder.
All of these shares will be subject to resale restrictions prohibiting resale for a period of 4 months and a day from their date of issue. The Debts settlement with non-arm's length creditors was approved by the independent directors of the Company, and is exempt from the minority approval and formal valuation requirements of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions, because the related party transactions are well under 25% of the Company's market capitalization and its shares are not listed on any of the specified markets under that Instrument.
ON BEHALF OF THE BOARD OF DIRECTORS
Darren Rowles, President & CEO
For more information about Sona, please contact:
Darren Rowles
President and Chief Executive Officer
Telephone: +1 (902) 880-9925
Email: darren@sonanano.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/46305
