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VANCOUVER, BC, January 20, 2021 / CNW / – FPX Nickel Corp. (TSXV: FPX) (“Nickel FPX“or the”Society“) is pleased to announce that it intends to convert the total amount of principal and interest due on the long term loan made to the Company by a private shareholder (the “Private shareholder loan”), totaling approximately $ 3,453,051, into 5,312,386 ordinary shares of the Company at a price of CA $ 0.65 per share (the “Debt conversion”). Upon completion of the debt conversion, the private shareholder loan will be extinguished and the company will be debt free.
All securities issued in connection with the debt conversion will be subject to a four (4) month hold period. Completion of the Debt Conversion is subject to receipt of all required regulatory and other approvals, including acceptance by the TSX Venture Exchange.
The terms of the private shareholder loan are described in the Company’s press release dated March 25, 2019. The Debt Conversion constitutes a “related party transaction” under Multilateral Instrument 61-101 – Protection of Holders of Minority Securities in Special Transactions (“MI 61-101“) because the private shareholder is a related party of FPX Nickel given its effective interest of more than 10% in the Company. In accordance with sections 5.5 (a) and 5.7 (1) (a) of Regulation 61-101, the Company is exempt from obtaining a formal assessment and minority approval of the Company’s shareholders with respect to the Debt Conversion due to the fair market value of the Debt Conversion being less than 25% of the capitalization stock market holder of the Company.
About FPX Nickel Corp.
FPX Nickel Corp. focuses on the exploration and development of the Decar Nickel District, located in the center British Columbia, and other occurrences of the same unique style of natural nickel-iron alloy mineralization known as awaruite.
On behalf of FPX Nickel Corp.
Martin Turenne, President, CEO and Director
Some of the statements made and information contained in this document are considered “forward-looking information” within the meaning of applicable Canadian securities laws. These statements relate to future events and conditions and therefore involve inherent risks and uncertainties, as disclosed in the Company’s periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE FPX Nickel Corp.
For more information: please visit the Company’s website at www.fpxnickel.com or contact Martin Turenne, President and Chief Executive Officer, at (604) 681-8600 or [email protected]