Notice of Default for Nio-Star Corp.

Rhea-AI Summary

Sarissa Resources Inc. (OTC: SRSR) announced that its subsidiary Nio-Star Corp received a Notice of Default on March 17, 2021, from RD Volusia LLC regarding a Convertible Note issued on August 19, 2017. Nio-Star must resolve a default of $C384,058.51 within five days to avoid foreclosure on its Secured Property, including patented land and mining leases. Alternatively, failure to comply could lead to RD Volusia acquiring 51% of Nio-Star's stock, reducing Sarissa's control over the subsidiary. Further updates will be provided before the March 22 deadline.

Positive

• None.

Negative

• Nio-Star received a Notice of Default for $C384,058.51 which could lead to foreclosure.
• If unresolved, RD Volusia may acquire 51% of Nio-Star, reducing Sarissa's control.
• Potential loss of valuable assets, including patented land and mining leases.

TORONTO, March 18, 2021 /PRNewswire/ -- Sarissa Resources Inc. (OTC Markets: Pink SRSR) ("Sarissa" or the "Company") is advising its shareholders that the Company's Nio-Star Corp ("Nio-Star") subsidiary was served with a Notice of Default on March 17, 2021, from RD Volusia LLC ("RD Volusia") an assignor of the Convertible Note issued to RP Capital Group Inc., on August 19, 2017 and announced in a press release on August 21, 2017.

Nio-Star has five (5) days to cure the default in the amount of $C384,058.51. RD Volusia has indicated that unless the company complies with its obligations to either repay the amount due and payable or voluntarily convey the Secured Property as called for in the terms of the Convertible Note, it will proceed to foreclose on the Secured Property based on its first lien which was given as part of the conditions of closing the Convertible Note and securing the $C250,000.00 of financing.  The Secured Property of Nio-Star entails all assets of Nio-Star including the patented land and mining leases. Alternatively, RD Volusia has the right to force Nio-Star to issue common shares resulting in RD Volusia owning 51% of Nio-Star stock and thereby having a control position in Nio-Star, which would therefore no longer be a wholly-owned subsidiary of Sarissa Resources Inc.

Nio-Star's board is working diligently to resolve this issue prior to the deadline on March 22, 2021 and will update shareholders on further developments in this matter.

About Sarissa Resources Inc.

Sarissa Resources Inc. is a mining development company presently focuses on developing the Nemegosenda Niobium project through its Nio-Star Corp., subsidiary.

For further information contact:

Sarissa Resources Inc.
Telephone: +1-702-550-2347
Email: IR.SarissaResources@gmail.com

Forward-Looking Statements Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses or net earnings; projections of growth; and assumptions relating to the foregoing. Such forward-looking statements are generally qualified by terms such as plans, anticipates, expects, believes or similar words of like kind. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or qualified. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking information. These factors are discussed in greater detail in the Company's business plan and filings with the OTC Markets.

View original content:http://www.prnewswire.com/news-releases/notice-of-default-for-nio-star-corp-301250632.html

SOURCE Sarissa Resources Inc.

FAQ

What is the Notice of Default issued to Sarissa Resources' subsidiary Nio-Star Corp?

The Notice of Default was issued on March 17, 2021, requiring Nio-Star to cure a default of $C384,058.51 within five days.

What could happen if Nio-Star Corp does not resolve the default?

If unresolved, RD Volusia may foreclose on the Secured Property or acquire a 51% ownership stake in Nio-Star.

When is the deadline for Nio-Star to address the Notice of Default?

Nio-Star has a deadline to resolve the issue by March 22, 2021.

What are the implications of RD Volusia acquiring 51% of Nio-Star?

Acquisition of 51% would mean Sarissa no longer fully owns Nio-Star, impacting control and management.