TSXV – BEN.H
VANCOUVER, BC, Oct. 8, 2020 /CNW/ - Butte Energy Inc.
(TSXV: BEN.H) (the "Company") is pleased to
announce that the TSX Venture Exchange (the "TSXV") has advised
that the Company's common shares will resume trading on the NEX
Exchange under the symbol "BEN" at market open on
Tuesday October 13, 2020.
The lifting of the trading halt follows the termination of the
business combination proposal with Pura
Valley, LLC and Pura Extractions LLC dated November 15, 2018 and announced on November 28, 2018.
The Company is pleased to announce that Geir Liland, Jeffrey
Harder and Travis Musgrave
have been appointed to the Company's board of directors.
Geir Liland has been appointed as
the CEO and Joanna Vastardis has
been appointed as the CFO and Corporate Secretary. Jason Rickert, Steven
Parker and Lee Bowles have
resigned from the board and the new board of directors would like
to thank them for their services and wish them success in their
future endeavours. The Company's annual general meeting of
shareholders is scheduled to occur December
11, 2020.
In connection with the foregoing appointments, an aggregate of
11,000,000 incentive stock options have been granted to directors,
officers, consultants and charitable organizations at a price of
$0.10 per share, exercisable for a
period of 10 years, subject to TSXV approval.
The Company received conditional approval from the TSXV to issue
6,000,000 units of the Company at $0.05 per unit, with each unit consisting of one
common share and one common share purchase warrant, exercisable at
a price of $0.05 for a period of 12
months from the date of issue (the "Principal Units") in
satisfaction of $300,000 principal
debt of a matured debenture owed to a third party.
The Company has also received conditional approval to
issue 1,158,900 units of the Company at deemed price of
$0.07 per unit for the conversion of
$81,123 accrued interest with each
unit consisting of one common share and one common share purchase
warrant, exercisable at a price of $0.095 for a period of 12 months from the date of
issue (the "Interest Units") in satisfaction of $81,123 accrued interest due to a third
party.
Following the issuance of both shares for debt settlements, the
total issued and outstanding common shares of the Company will
total 310,225,302 and 7,158,900 warrants which are expected to be
exercised shortly.
The issuance of shares for debt for both debt settlements will
be subject to a four month hold period in accordance with
applicable Canadian securities laws and are subject to final
acceptance of the TSXV.
The Company announces it has entered into a mandate agreement
with Fiore Management & Advisory Corp. to provide financial
advice and corporate administration.
The Company has been advised that Frank
Giustra and his related entities acquired an aggregate of
61,400,000 common shares of the Company representing 19.79% of the
issued and outstanding common shares of the Company pursuant to a
private transaction. Fiore Financial Corporation and The
Great Ontario Food Company, Inc. (companies indirectly owned by Mr.
Giustra) acquired an aggregate of 56,400,000 common shares,
representing 18.18% of the issued and outstanding common shares of
the Company. Sestini and Co. Pension Trustees Ltd. (an
investment account controlled and directed by Mr. Giustra) acquired
5,000,000 common shares of the Company representing in aggregate
1.61% of the issued and outstanding shares of the Company.
Following these transactions, Mr. Giustra has indirect ownership
and/or control, over an aggregate of 61,400,000 common shares of
the Company representing 19.79% of the issued and outstanding
common shares of the Company which will be diluted to 19.35% on the
exercise of the Company's outstanding warrants.
The Company further announces that Brian
Paes-Braga and his related entities acquired 62,000,000
common shares of the Company representing 19.99% of the issued and
outstanding common shares of the Company pursuant to a private
transaction. Mr. Paes-Braga acquired an aggregate of
62,000,000 common shares, representing 19.99% of the issued and
outstanding common shares of the Company. Following these
transactions, Mr. Paes-Braga has indirect ownership and/or control,
over an aggregate of 62,000,000 common shares of the Company
presenting 19.99% and would have indirect ownership and/or control,
over an aggregate of 63,000,000 common shares representing 20.24%
on a partially diluted basis, assuming the exercise of 1,000,000
incentive stock options granted to the Quiet Cove Foundation, a
charitable organization controlled by Mr. Paes-Braga. On the
exercise of the Company's outstanding warrants, Mr. Paes-Braga's
holdings will be diluted to 19.53% of the issued and outstanding
and 19.79% on a partially diluted basis.
The Company has been advised that Mr. Giustra and his related
entities and Mr. Paes-Braga and his related entities acquired these
securities for investment purposes and will be disclosed in Early
Warning Reports to be filed on SEDAR. Mr. Giustra and Mr.
Paes-Braga may in the future acquire or dispose of securities of
the Company, through the market, privately or otherwise, as
circumstances or market conditions warrant.
On behalf of BUTTE ENERGY INC.
"Geir
Liland"
Chief Executive Officer
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.
SOURCE Butte Energy Inc.