TRANSFORMA RESOURCES CORPORATION ANNOUNCES DEBT SETTLEMENT, LOAN AGREEMENT AND CREATION OF CONTROL PERSON
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Vancouver, British Columbia, June 27, 2022 (GLOBE NEWSWIRE) — Transforma Resources Corporation (TSXV: TFM) (the “Company” Where “Transform”):
Transforma is pleased to announce that it has arranged debt settlements with certain arm’s length creditors and with non-arm’s length creditors of the Company to settle a debt of $764,840. Approximately $362,000 is attributable to older accrued consulting fees, payable to current and former directors and officers of the Company, dating back to the period from 2016 to 2021, as well as approximately $165,000 for loans and advances made by Lee Ann Wolfin, a former director and officer of the Company.
The debts will be settled by the issue and delivery of an aggregate of 10,926,287 common shares of the Company in the aggregate, at a deemed value of $0.07 per share. The shares will be subject to resale restrictions for a period of 4 months and one day from their date of issue.
In addition, the Company has agreed to enter into a loan agreement with Lee Ann Wolfin, for a principal amount of $164,727.02 with interest at 6.0% per annum, for additional consulting fees accrued from previous years. The loan requires partial repayment at the end of the second anniversary of the loan and the balance on the third anniversary. The lender also has the right to demand payment after 18 months under the loan agreement.
As a result of the proposed debt settlement, Lee Ann Wolfin will acquire an additional 3,967,011 common shares of the Company (the “Shares”), which will represent approximately 23.4% of the total then issued shares of the Company. The Company is advised that Lee Ann Wolfin, and all persons acting jointly or in concert with her, previously owned 924,448 common shares of the Company and, therefore, after the completion of the debt settlements, she will own approximately 28, 8% of the then total issued and outstanding common shares of the Company. Lee Ann Wolfin intends to hold the Shares for investment purposes. Depending on market conditions and other factors, it may from time to time acquire additional securities of the Company, dispose of some or all of the existing or additional securities it holds in the Company, or will or may continue to hold his current position.
Additional information regarding the foregoing will be contained in the Alert Report which will be filed by Lee Ann Wolfin on SEDAR under the Company’s profile.
The debt settlements and loan agreement are subject to acceptance by the TSX Venture Exchange and, in the case of Lee Ann Wolfin, disinterested shareholder approval, as the issuance of the shares would make her a “control person” as that term is defined by applicable securities laws.
About the company
Transforma is a junior copper and precious metals exploration company involved in a 100% owned project located in southwestern British Columbia, consisting of the Thunder Copper property.
For more information, please visit: www.transformacorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS
President and CEO
For more information, please contact:
Carlos Lau at (604) 253-2668
THE TSX VENTURE EXCHANGE HAS NOT APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE.
Source: Transforma Resources Corporation