BROSSARD, QC – (CNW Telbec – Aug. 21, 2018) – Squatex Resources & Energy Inc. (Squatex – www.squatex.com) (CSE:SQX)(CSE:SQX.CN)(CNSX:SQX) announces the conclusion of an agreement to pay in shares debts owed by Squatex to 9129-2862 Québec Inc., a company wholly owned by Jean-Claude Caron, director and president of Squatex, which currently holds, directly and indirectly through 9129-2862 Québec Inc., 61,808,806 Squatex common shares, representing 58.40% of the issued and outstanding shares.
A total of 18,008,780 Squatex common shares will be issued to 9129-2862 Québec Inc., at a price of $ 0.10, to settle all debts totaling $ 1,800,878.09 as at August 21, 2018. These debts represent amounts advanced by 9129-2862 Québec Inc. over the years to fund Squatex’s various activities. Squatex considers that it is advantageous at this stage to clean up its’s financial balance sheet by eliminating the debts contracted by Squatex.
This issue of common shares is a transaction with a related person under Regulation 61-101 respecting protection of minority security holders in special transactions but enjoys an exemption from the formal valuation and the shareholder approval since the fair market value of the issued shares does not exceed 25% of Squatex’s market capitalization.
Securities issued will be subject to a holding period of 4 months and 1 day. As a result of this offering, a total of 123,850,656 Squatex common shares will be issued and outstanding and Jean-Claude Caron, directly and indirectly through 9129-2862 Québec Inc., will hold 79,817,586 common shares, or 64,45% of the issued and outstanding shares.
About Resources & Energy Squatex Inc.
Resources & Energy Squatex Inc. is a junior oil and gas exploration company established in 2001 and incorporated under the Canada Business Corporations Act on April 12, 2002, with head office at 7055 Boul. Taschereau, Suite 500, Brossard, Quebec J4Z 1A7. The main activity of the company is, as operator, to carry out works and studies aiming at the evaluation and the full development of the oil and gas potential of a territory of 656,093 hectares under exploration license in the Province of Québec. Squatex holds 224,933 ha of exploration permits in the St. Lawrence Lowlands and 431,160 ha of permits in the Lower St. Lawrence region (70% net interest).
Certain statements made herein may constitute forward-looking statements. These statements relate to future events or future economic results of Squatex and involve known and unknown risks, uncertainties and other factors that could materially affect the results, performance or achievements of the Company in relation to that expressed or implied by the statements of Squatex. Actual events or results could be very different. Consequently, the decision to invest in the securities of Squatex should not be based on such statements at any time. Squatex disclaims any intention and any obligation to update these forward-looking statements.
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