This article has been disseminated on behalf of Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF) and may include paid advertising.
Search Minerals (TSX.V: SMY) (OTC: SHCMF) said it entered a transaction with LeadFX Inc. to settle $404,053.73 of outstanding debt through the issuance of 808,107 common shares at a deemed price of $0.50 per share. The Company said completing the Shares-for-Debt transaction, rather than proceeding with a previously planned unsecured convertible loan, will preserve cash and strengthen its balance sheet. The shares will carry a four-month-and-one-day statutory hold period. Because LeadFX is a related party, the transaction falls under MI 61-101, though Search said it qualifies for exemptions from the formal valuation and minority approval requirements since the fair market value of shares issued does not exceed 25% of its market capitalization. The Company said no new control person will be created.
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