United Battery Metals Corp. Announces Settlement of Debt

Rhea-AI Summary

United Battery Metals Corp. (CSE:UBM)(OTC PINK:UBMCF) announced the settlement of $199,924.81 in debt through the issuance of 807,777 common shares at a value of $0.2475 per share.

CEO Michael Dehn participated in the settlement, receiving 383,535 shares, which qualifies as a related party transaction. The company is relying on exemptions from formal valuation and minority approval requirements under Multilateral Instrument 61-101.

All shares are subject to a four-month hold period as per securities laws.

Positive

• Settlement of $199,924.81 in debt, improving financial standing.
• Issuance of shares at a deemed value of $0.2475, potentially stabilizing the company's capital structure.

Negative

• Related party transaction involving CEO Michael Dehn, which may raise governance concerns.

VANCOUVER, BC / ACCESSWIRE / September 4, 2020 / United Battery Metals Corp. (CSE:UBM)(OTC PINK:UBMCF)(FWB:0UL) ("UBM" or the "Company") announces today that it has settled an aggregate of $199,924.81 in indebtedness of the Company through the issuance of 807,777 common shares of the Company (the "Shares") at a deemed value of $0.2475 per Share (the "Debt Settlement").

All Shares are subject to a statutory four month hold period in accordance with applicable securities laws.

The participation in the Debt Settlement of Michael Dehn, Chief Executive Officer and a director of the Company, having received a portion, specifically 383,535 of the Shares, is considered a "related party transaction" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that participation in the Debt Settlement by an insider did not exceed 25% of the fair market value of the Company's market capitalization.

ON BEHALF OF THE BOARD OF DIRECTORS

"Michael Dehn"

Chief Executive Officer

For further information, please contact the Company at: (604) 428-9063.

The CSE does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: United Battery Metals Corp.

View source version on accesswire.com:
https://www.accesswire.com/604919/United-Battery-Metals-Corp-Announces-Settlement-of-Debt

FAQ

What is the recent debt settlement by United Battery Metals Corp. (UBMCF)?

United Battery Metals Corp. settled $199,924.81 in debt by issuing 807,777 common shares at a price of $0.2475 per share.

Who benefited from the debt settlement in United Battery Metals Corp.?

CEO Michael Dehn received 383,535 shares as part of the debt settlement, classified as a related party transaction.

What regulations did United Battery Metals Corp. rely on for the debt settlement involving the CEO?

The company relied on exemptions from formal valuation and minority approval requirements under Multilateral Instrument 61-101.

Are there any hold periods on the shares issued in the debt settlement of UBMCF?

Yes, all shares issued in the debt settlement are subject to a statutory four-month hold period according to securities laws.

How does the debt settlement impact United Battery Metals Corp.'s financial situation?

The debt settlement may improve the financial standing of United Battery Metals Corp. by eliminating liabilities.