Coloured Ties Provides Update on Trading Reinstatement

Rhea-AI Summary

Coloured Ties Capital (TIE) announces the reinstatement of trading on the TSX Venture Exchange after resolving a ceased trade order issued by the British Columbia Securities Commission on February 2, 2024. The order was due to the company's failure to file its annual audited financial statements for the fiscal year ending September 30, 2023. Trading suspension was lifted on February 12, 2024.

As of April 30, 2024, Quebec Pegmatite Holdings owes Coloured Ties approximately $1,240,288, with $90,000 maturing on August 7, 2024, and the remaining amount on December 31, 2024, accruing interest at 4% per annum. Additionally, Coloured Ties has a margin credit facility valued at the lower of 30% of shares held in Patriot Battery Metals or $5,000, with an interest rate of prime plus 3%. This facility is collateralized by all cash and securities in the company's accounts at the Creditor.

Positive

• Reinstatement of trading on the TSX Venture Exchange.
• Revocation of the ceased trade order by the BCSC on February 12, 2024.
• Ongoing negotiation with QPC for a repayment plan of the debt.
• Interest rate on the QPC debt is relatively low at 4% per annum.

Negative

• Initial failure to file required annual audited financial statements for the year ending September 30, 2023.
• Suspension of trading from February 2, 2024, to February 12, 2024.
• Outstanding debt of $1,240,288 owed by QPC, maturing later in 2024.
• Dependence on a margin credit facility, which is to the lower of 30% of shares held in Patriot Battery Metals or $5,000, with an interest rate of prime plus 3%.

Vancouver, British Columbia--(Newsfile Corp. - May 14, 2024) - Coloured Ties Capital Inc. (TSXV: TIE) ("CTI" or the "Company") announces that the TSX Venture Exchange has accepted the Company's application for the reinstatement of trading in the Company's common shares (the "Shares").

On February 2, 2024, the British Columbia Securities Commission issued a ceased trade order ("CTO") due to the Company's failure to file its annual audited financial statements for the year ended September 30, 2023, as required under National Instrument 51-102 - Continuous Disclosure Obligations, as previously disclosed on February 5, 2024.

As a result of the CTO, trading of the Shares was suspended on the TSXV. The BCSC revoked its CTO effective February 12, 2024.

At the request of the TSXV, the Company confirms that as of April 30, 2024, Quebec Pegmatite Holdings Corporation ("QPC") owes the Company a principal amount of approximately $1,240,288 (the "QPC Debt"). $90,000 of the QPC Debt matures on August 7, 2024 and the remaining QPC Debt matures on December 31, 2024. Interest accrues at 4% per annum. The Company is working with QPC to determine a repayment plan.

In September 2021, the Company entered into a margin credit facility with one of the Company's brokers (the "Creditor"), an arm's length party, for the purposes of increasing the Company's purchasing power to purchase securities. The amount of margin facility at any given time is based on the lower of (a) 30% of the fair market value of the shares held in Patriot Battery Metals Inc. and (b) $5,000. The interest rate of the margin facility is prime lending rate plus 3%. All cash and securities held in the Company's accounts at the Creditor act as collateral for the margin credit facility. There is no set repayment schedule if the Company maintains the required level of equity in its accounts with the Creditor. Kal Malhi, CEO of the Company, personally guaranteed the repayment of the margin credit facility.

ABOUT COLOURED TIES CAPITAL INC.

Coloured Ties is a publicly traded Canadian-based venture capital firm focused on early-stage investments in companies in the junior resources and break-through and disruptive technologies. Coloured Ties investment strategy is to invest early in multiple private and public companies across a variety of sectors that merit investments to advance promising ventures globally. Coloured Ties invests early stage, in promising projects where it can be the Founding or Early-Stage investor and can additionally provide investees with advisory services and access to the Company's ecosystem.

For further information, please contact:

Kal Malhi
Chief Executive Officer
kal@bullruncapital.ca
Ph: 604-805-4602

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/209222

FAQ

Why was Coloured Ties Capital's (TIE) trading suspended?

Trading was suspended due to the company's failure to file its annual audited financial statements for the year ending September 30, 2023.

When was the trading suspension of Coloured Ties Capital (TIE) lifted?

The trading suspension was lifted on February 12, 2024.

How much does Quebec Pegmatite Holdings (QPC) owe Coloured Ties Capital (TIE)?

QPC owes Coloured Ties Capital approximately $1,240,288.

What is the interest rate on the debt owed by Quebec Pegmatite Holdings (QPC)?

The interest rate on the QPC debt is 4% per annum.

What is the margin credit facility limit for Coloured Ties Capital (TIE)?

The margin credit facility limit is the lower of 30% of shares held in Patriot Battery Metals or $5,000.

What is the interest rate on Coloured Ties Capital's (TIE) margin credit facility?

The interest rate on the margin credit facility is prime lending rate plus 3%.