Quebec Precious Metals to Issue Shares in Payment of Debts and Deferred Share Units

Rhea-AI Summary

Quebec Precious Metals (QPM) will issue 457,942 common shares to settle debts totaling $38,925.08 owed to three directors for services rendered in Q4 FY2024 and Q1 FY2025. The shares will be issued at $0.085 each, with a four-month hold period. The Debt Settlement is considered a related party transaction but is exempt from certain MI 61-101 requirements. Additionally, QPM will issue 223,530 deferred stock units (DSUs) to the CEO as part of a plan to pay 20% of his compensation in DSUs. These units will vest one year from the grant date and can be paid in shares or cash when the CEO leaves the company.

Positive

• Preserves QPM's cash position by settling debts with shares.
• Avoids immediate cash outflow of $38,925.08.
• DSU issuance aligns CEO compensation with company performance.

Negative

• Share issuance for debt settlement dilutes existing shareholders.
• Four-month hold period may affect shares' liquidity.
• Deferred stock units create future financial obligations.

MONTRÉAL, QC / ACCESSWIRE / May 28, 2024 / Quebec Precious Metals Corporation (TSXV:QPM)(FSE:YXEP)(OTCQB:CJCFF) ("QPM" or the "Corporation") announces that it has entered into agreements to issue an aggregate of 457,942 common shares in settlement of debts of three current directors of the Corporation in an aggregate amount of $38,925.08 (the "Debt Settlement"). The Debt Settlement is paid in connection with services rendered by the current directors during the fourth quarter of the financial year ending January 31, 2024 and the first quarter of the financial year ending January 31, 2025.

The Board of Directors and Management of QPM believe that the Debt Settlement is in the best interests of QPM as it will help the Corporation preserve its cash position. The common shares to be issued pursuant to the Debt Settlement will be issued at a deemed price of $0.085 per share and will be subject to a four-month hold period pursuant to applicable securities regulations and the policies of the TSX Venture Exchange (the "TSXV").

The Debt Settlement is considered a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Debt Settlement will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as QPM's securities are not listed on any stock exchange identified in Section 5.5(b) of MI 61-101 and neither the fair market value of the common shares to be issued in the Debt Settlement nor of the services provided in connection with the debts which are the subject of the Debt Settlement exceeds 25% of QPM's market capitalization.

The Debt Settlement is subject to regulatory approval, including that of the TSXV.

Deferred shares units

The Company announces the issuance of 223,530 deferred stock units (the "DSUs") to the Chief Executive Officer pursuant to its Deferred Share Unit Plan (the "DSU Plan"). This follows the decision that from May 1, 2022, the CEO's salary compensation will be paid 80% in cash and the other 20% of compensation will be paid in Differed DSUs quarterly. These DSUs represent the portion for the fourth quarter of 2024 and the first quarter of 2025. In accordance with the DSU Plan, the DSUs shall vest in accordance with the terms of agreements granting same and one year from the date of such grant, subject to the provisions of TSXV Policy 4.4 and the Company's security based compensation plan, and are payable in common shares of the Company, or in cash at the sole discretion of the Company, upon the holder ceasing to be an employee of the Company.

About Quebec Precious Metals Corporation

QPM is an exploration company with a large land position in the highly prospective Eeyou Istchee James Bay territory, Quebec, near Newmont Corporation's Éléonore gold mine. The company focuses on advancing its Sakami Gold project and its newly discovered, drill-ready Ninaaskuwin lithium showing on the Elmer East project. In addition, the Company holds a 68% interest in the Kipawa/Zeus rare earths project located near Temiscaming, Quebec.

For more information please contact:

Normand Champigny
Chief Executive Officer
Tel.: 514 979-4746
nchampigny@qpmcorp.ca

Neither 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.

SOURCE: Quebec Precious Metals Corporation

View the original press release on accesswire.com

FAQ

What is the significance of QPM issuing 457,942 shares for debt settlement?

QPM is issuing 457,942 shares to settle $38,925.08 in debts owed to three directors, preserving cash while diluting existing shareholders.

Why is QPM issuing deferred stock units (DSUs) to the CEO?

QPM is issuing 223,530 DSUs to the CEO as part of a compensation plan where 20% of his pay is in DSUs to align his interests with the company's performance.

What is the price per share for QPM's debt settlement?

The shares are issued at a deemed price of $0.085 each.

How does QPM's debt settlement affect existing shareholders?

Issuing new shares dilutes the holdings of existing shareholders, but it preserves the company's cash reserves.

What are the regulatory requirements for QPM's debt settlement?

The debt settlement is a related party transaction exempt from certain MI 61-101 requirements and subject to TSXV approval.