VANCOUVER, Dec. 10, 2019 /CNW/ - Dixie Gold Inc. (TSX
VENTURE: DG) ("Dixie
Gold" or the "Corporation" or the
"Issuer") provides the following update with respect to
Western Hemp Corp. (see news release, Clean Commodities Corp.
Announces Intent to Spin-Out Licensed Hemp Producer to
Shareholders, dated September 23,
2019).
The Corporation (previously Clean Commodities Corp.) has been
subject to a restrictive undertaking imposed by the Corporation's
listed exchange (being for factual clarity, the TSX Venture
Exchange) since September 24, 2019
(the "Regulatory Restriction"), the subject matter of which
relates to Western Hemp Corp. ("WHC").
The Regulatory Restriction prohibits the Issuer, as a
shareholder of WHC in its current form, from: 1) making further
investment in or on behalf of WHC beyond a nominal prescribed
amount (expended); and 2) imposes a prohibition against the
commencement of commercial operations by WHC.
Despite best efforts by the Corporation, the imposed regulatory
constraints are, in the view of the Corporation, terminal to the
Issuer's ability to reasonably advance its shareholding in WHC as
said constraints amount, in the Corporation's opinion, to a
regulatory prohibition against funding and operating WHC in a
commercially-viable near-term manner.
Ongoing capital market deterioration with respect to domestic
entities licensed under the Cannabis Act (Canada) has further challenged the situation
with respect to the Corporation being able to assist in regards to
the potential sourcing of external third-party capital, especially
given that the present-day commercial operations of WHC are
currently under an operating prohibition as required by the TSX
Venture Exchange.
As a result of the foregoing, the Corporation advises that it is
not reasonably able to advance its investment in WHC and therefore
will be discontinuing further involvement with respect to WHC,
including, but not limited to, discontinuing plans to create a
publicly traded company thereof.
The Corporation expects to incur a non-material impairment
related to its investment in WHC.
About Dixie Gold Inc.
Dixie Gold Inc. (TSXV:DG) is a publicly-traded exploration
company involved in a diverse portfolio of exploration projects
including gold, lithium and uranium assets in Canada. For more information, please visit
www.dixiegold.ca.
Signed,
Ryan Kalt, Chief Executive
Officer
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements address future events and conditions and
therefore, involve inherent risks and uncertainties. Actual results
may differ materially from those currently expected or forecast in
such statements.
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 Dixie Gold Inc.
