Unigold Inc. Announces TSX-V Approves Warrant Extension

Rhea-AI Summary

Unigold has received approval from the TSX-V to extend the expiry dates for 46,000,342 share purchase warrants to December 31, 2024. These warrants allow holders to buy one common share at $0.30 per share, with all other terms unchanged.

The warrants originate from private placements completed between June 2020 and November 2022. Of these, 2,418,910 warrants belong to insiders, making this a related party transaction under Multilateral Instrument 61-101 and TSXV Policy 5.9. However, formal valuation and minority approval are not required as the market value does not exceed 25% of Unigold's market capitalization.

Positive

• None.

Negative

• Extended warrants may signal potential cash flow or financing issues.
• High volume of insider-held warrants can raise governance concerns.

Toronto, Ontario--(Newsfile Corp. - June 20, 2024) - Unigold Inc. (TSXV: UGD) (OTCQB: UGDIF) (FSE: UGB1) ("Unigold" or the "Company") announces that the TSX-V has approved the extension of the expiry dates of a total of 46,000,342 share purchase warrants (the "Warrants") to December 31, 2024 (the "Warrant Extensions"). Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of $0.30 per common share and all other terms of the Warrants, including exercise price, will remain the same. The Warrants were issued pursuant to the following private placements and all are set to expire on June 29, 2024:

• 16,629,167 warrants, including 193,060 warrants issued to insiders, were issued pursuant to a private placement which closed on June 24, 2020
• 12,596,175 warrants, including 375,850 warrants issued to insiders, were issued pursuant to a private placement which closed on August 10, 2021
• 8,750,000 warrants, including 1,850,000 warrants issued to insiders, were issued pursuant to a private placement which closed on September 7, 2022
• 1,150,000 warrants were issued pursuant to a private placement which closed on September 12, 2022
• 6,875,000 warrants were issued pursuant to a private placement which closed on November 1, 2022

A total of 2,418,910 Warrants are held by parties who are considered to be "related parties" of the Company. Therefore, the amendment of Warrants constitutes a "related party transaction" as contemplated by Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions, and TSXV Policy 5.9 - Protection of Minority Shareholders in Special Transactions. However, the exemptions from formal valuation and minority approval requirements provided for by these guidelines can be relied upon as the fair market value of the Warrants held by insiders does not exceed 25% of the market capitalization of the Company.

For further information please visit http://www.unigoldinc.com or contact:

Mr. Joseph Hamilton
Chairman & CEO
T. (416) 866-8157

Forward-Looking Statements
Certain statements contained in this document, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows, may constitute forward-looking statements within the meaning of the federal securities laws. The forward-looking statements contained in this document are made as of the date hereof and we assume no obligation to update the forward-looking statements Where applicable, we claim the protection of the safe harbour for forward-looking statements provided by the (United States) Private Securities Litigation Reform Act of 1995. For more information, please visit https://www.unigoldinc.com/profile/forward-looking-statement.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213711

FAQ

What did Unigold Inc. announce on June 20, 2024?

Unigold announced that the TSX-V approved the extension of expiry dates for 46,000,342 share purchase warrants to December 31, 2024.

What is the new expiry date for Unigold's share purchase warrants?

The new expiry date for Unigold's share purchase warrants is December 31, 2024.

What is the exercise price for Unigold's extended warrants?

The exercise price for Unigold's extended warrants remains $0.30 per common share.

Why does the extension of Unigold's warrants qualify as a related party transaction?

The extension qualifies as a related party transaction because 2,418,910 of the warrants are held by insiders, triggering regulations under Multilateral Instrument 61-101 and TSXV Policy 5.9.

Does Unigold need formal valuation and minority approval for the warrant extension?

No, Unigold is exempt from formal valuation and minority approval as the value of insider-held warrants is less than 25% of the company’s market capitalization.