Apogee Announces Shares For Debt Settlement
OREANDA-NEWS. Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) has entered into settlement agreements (the "Settlement Agreements") with various creditors of the Company whereby Apogee would issue common shares of the company at a deemed price of between $0.30 and $3.40 per common share in full and final settlement of the amounts owing to such creditors (the "Shares for Debt Settlement"). Pursuant to the Settlement Agreements, $1,346,444 in debts would be settled and a total of 2,040,000 common shares would be issued to the creditors, which would represent 22.7% of the issued and outstanding common shares of Apogee following the completion of the Shares for Debt Settlement. The common shares received as part of the Shares for Debt Settlement will be subject to a four month and one day statutory hold period.
The board and management of Apogee believe that the proposed Shares for Debt Settlement is in the best interests of Apogee because the creditors have agreed to settle the debts owed to them for common shares at a price per share of between $0.30 and $3.40, a significant premium to the closing market price of the Company's common shares on the TSX Venture Exchange on March 2, 2016.
Francois Perron, David Gower, Scott Paterson, Harald Batista and Peter Bojtos are directors of Apogee and such parties are non-arm's length parties under the policies of the TSX Venture Exchange. The Shares for Debt Settlement with such parties also constitutes a "related party transaction" for Apogee under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), as these parties would receive common shares of Apogee pursuant to the Shares for Debt Settlement. The total liability proposed to be settled with the internal parties pursuant the Shares for Debt Settlement is $192,833.
The Company received conditional approval from the TSX Venture Exchange for the Shares for Debt Settlement and has issued the 2,040,000 common shares of Apogee to the creditors.
About Apogee Silver Ltd
Apogee Silver Ltd. is a mineral exploration and development stage company listed on the TSX Venture Exchange under the symbol APE. Apogee targets advanced, high grade silver-zinc-lead projects in South America.
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