VANCOUVER, BC / ACCESSWIRE / August 14, 2020 / Gray Rock Resources Ltd. (TSXV: GRK) ("Gray Rock" or the "Company") announced today that it has entered into debt settlement agreements with two of its principal creditors, Oniva International Services Corp. ("Oniva"), which provides administrative services to the Company, and Intermark Capital Corp. ("Intermark"), which provides management services to the Company, through the Company's President & CEO, David Wolfin. Oniva is a private company also controlled by David Wolfin.
The Company will settle an aggregate of $330,317.58 in indebtedness, for the provision of administrative services and costs incurred on behalf of the Company by Oniva ($283,067.58), as well as accrued management consulting fees owed to Intermark ($47,250.00) for the period from September 2018 to February 2020, in exchange for the issuance of a total of 1,651,587 common shares at a deemed price of $0.20 per share. The proposed debt settlements are subject to the acceptance of the TSX Venture Exchange. The shares will be subject to resale restrictions for a period of 4 months and a day from their date of issuance.
As mentioned above, Oniva and Intermark are private companies controlled by David Wolfin, who also holds indirectly a control position in Gray Rock, and is its President & CEO and a director. The debt settlements are therefore "related party transactions" within the meaning of Multilateral Instrument 61-101, however, the Company can rely upon the exemptions from the requirements of a formal valuation and majority of the minority approval afforded by sections 5.5(b) and 5.7(b) respectively.
For further information please contact Gray Rock Resources Ltd. at ph. (604) 682-3701, or log onto our website at www.grayrockresources.com
ON BEHALF OF THE BOARD
"David Wolfin"
David Wolfin
President & CEO
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 news release.
