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(Globe Newswire) Vancouver – Rubicon Organics Inc., is pleased to announce that it has entered into a debt settlement agreement as of July 15, 2024 with one director of the company to settle $25,400 of director fees in consideration for the issuance of 59,764 fully paid common shares in the capital of the company with an assigned issue price of $0.42 per common share. The debt comprises the outstanding balance owed by the company to the creditor.
Pursuant to the debt settlement agreement, the debt shares are being issued at a price equal to the closing market price of the common shares on the TSX Venture Exchange on July 15, 2024, in accordance with the policies of the TSXV. No new control person of the company will be created pursuant to the shares for debt transaction.
The insider debt shares are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration for the common shares to be issued to insiders does not exceed 25% of its market capitalization.
Closing of the shares for debt transaction is subject to customary closing conditions and intends to close as soon as practicable. The debt shares will be issued pursuant to a prospectus exemption. Final approval of the shares for debt transactions remains subject to approval of the TSXV.
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