Sparton Resources Inc. has entered into debt settlement agreements with five creditors (which include the current president and chief financial officer of the company), pursuant to which the company agreed to issue an aggregate of 4,005,700 common shares at a deemed price of 10 cents per share in order to settle certain obligations of the company totalling $765,894.29 related to unpaid fees and expenses (excluding applicable harmonized sales tax).
The company has decided to satisfy this outstanding indebtedness with shares in order to conserve cash.
The debt settlement transaction is subject to the approval of the TSX Venture Exchange. The company will issue the shares (which are subject to a four-month hold period on resale) once the debt settlement transaction has been approved by the exchange.
Grant of options
The company has granted options to officers, directors and consultants to purchase a total of 2,775,000 Sparton shares at a price of 10 cents per share. The options are fully vested and expire on April 10, 2020. There are currently 111,375,460 shares of Sparton issued and outstanding. |