Sona Nanotech Inc. is converting notes payable of $95,000 and accrued interest of $67,322 owed to certain non-arm’s length note holders.
Sona Nanotech Inc. (CSE:SONA) (“Sona” or the “Company”): The Company is converting notes payable of $95,000 and accrued interest of $67,322 owed to certain non-arm’s length note holders and notes payable of $200,000 and accrued interest of $141,732 owed to certain arm’s length note holders. The notes payable will be settled in full by the issuance to these note holders of an aggregate of 2,520,270 common shares at a deemed price of $0.20 per share.
All of these shares will be subject to resale restrictions prohibiting their resale until May 14, 2020. The conversion of notes payable with non-arm’s length note holders was approved by the independent directors of the Company, and is exempt from the minority approval and formal valuation requirements of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions, because the related party transactions are well under 25% of the Company’s market capitalization and its shares are not listed on any of the specified markets under that Instrument.