Newton Energy Corporation Provides Additional Disclosure Regarding Debt Settlement Agreement and Announces Resumption of Trad...
11 November 2017 - 11:29AM
Further to the press release issued on October 2, 2017, Newton
Energy Corporation (the "
Company" or
"
Newton") wishes to provide additional disclosure
regarding the debt settlement agreement entered into with Kicker
Power Corp. ("
Kicker").
On April 27, 2016, Newton announced that it
entered into a non-binding letter of intent with Kicker pursuant to
which the parties were to complete a business combination (the
"LOI"). Pursuant to the LOI, Newton advanced
$400,000 to Kicker (the "Loan") at a rate of 5%
per annum for a term of 18 months payable and due in full at the
end of the term. The Loan was secured by a general security
agreement over all of the assets of Kicker.
As a result of the failure of the parties to
enter into a formal agreement on or before the agreed upon date,
Newton announced that the parties mutually agreed to terminate the
LOI.
With respect to the Loan, Kicker has repaid an
aggregate of $77,707 to Newton ($61,983 in principal and interest
and $15,723 in fees paid on behalf of Newton), however Kicker does
not and will not have sufficient funds to repay the balance
outstanding on the Loan and Kicker continues to wind up its
operations. As such, the debt settlement agreement pursuant to
which Kicker has agreed to issue an aggregate of 19.9% of the
outstanding shares in the capital of Kicker in order to settle an
outstanding debt of $349,154 ($337,678 in principal and $11,476 in
accrued interest) is the best arrangement for both parties at this
time.
The Company also announces that it has been
advised by the NEX, a separate board of the TSX Venture Exchange
that its common shares are scheduled to resume trading at the
opening of the market on Tuesday, November 14, 2017.
For further information, please contact: Newton Energy
Corporation Gino DeMichele, President & CEO 1600, 333 - 7th
Avenue S.W. Calgary, Alberta T2P 2Z1Phone: 403-680-7898
Neither the NEX Board nor its Regulation
Services Provider (as that term is defined in the policies of the
NEX Board) accepts responsibility for the adequacy or accuracy of
this release.
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