Colt Resources (TSXV:GTP) reported that in April 2015, the Company increased its investment to 15.76% on its associate, Colt Resources Middle East (CRME). Colt Resources subscribed to 2,000,000 shares of CRME at a price of $0.20 per share. CRME is a private company that acquires near-term production assets in the Middle East.
As quoted in the press release:
Colt subscribed to 2,000,000 shares of CRME at a price of $0.20 per share for an investment of $400,000. As a result of this investment, the Company’s share in CRME increased to 15.76% Colt is closely monitoring developments of the business of its associate, CRME, and, if given an opportunity, it will consider further increasing its position in CRME.
CRME may be considered a non-arm’s length party to the Company under the policies of the TSX Venture Exchange as the President and Chief Executive Officer of Colt is a director of CRME. Therefore, the transaction remains subject to TSX Venture Exchange approval. The price of the shares issued as part the transaction was determined based on a recent private placement done by CRME with other private investors in the first quarter of 2015.