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The Canadian Chrome Company Inc. (CSE: CACR,OTC:KWGBF) (CSE: CACR,OTC:KWGBF.A) (formerly KWG Resources Inc.) ("CCC", "KWG" or the "Company") is pleased to report that it has awarded its Chief Executive Officer (the "CEO"), Frank Smeenk, a bonus of $1,000,000 (the "Compensation Amount") as deferred compensation pursuant to the Company's Executive Compensation Plan. The Compensation Amount is payable pursuant to a deferred compensation arrangement in accordance with the exception under clause (k) of the definition of "salary deferral arrangement" in the Income Tax Act (Canada), to be paid to the CEO within three years after the end of the current calendar year, namely on or before December 31, 2028 (the "Outside Date"). The Compensation Amount is payable by delivery of 657,894 units (the "Compensation Units") to the CEO on or before the Outside Date at deemed price of $1.52 per Compensation Unit. Each Compensation Unit is comprised of one (1) CACR.A multiple-voting share and one (1) share purchase warrant enabling its holder to acquire one further CACR.A multiple-voting share from treasury upon payment of an exercise price of $1.90 at any time on or before the earlier of (i) September 9, 2030 or (ii) two (2) business days after completion of a take-over bid or a merger, amalgamation, arrangement or other form of business combination as a result of which the shareholders of the Company immediately prior to such bid or business combination do not own a majority of votes attaching to the voting securities of the Company or of the resulting issuer or do not have the power to elect a majority of the directors of the Company or of the resulting issuer, as the case may be, after completion of such bid or business combination. The Compensation Units were issued to a trustee (the "Private Placement") to be held and delivered in accordance with the Executive Compensation Plan.
The Private Placement is a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") as a result of the issuance of the Compensation Units. A formal valuation was not required under MI 61-101 because the Company is not listed on any of the stock exchanges specified in MI 61-101. Minority shareholder approval was also not required as the fair market value of the consideration for the transaction involving the Compensation Units does not exceed 25 percent of the Company's capitalization as of the date hereof, which is approximately $56 million. The Company did not file a material change report in respect of the proposed issuance of the Compensation Units at least 21 days before the Private Placement as such issuance was not determined at that time.
About The Canadian Chrome Company Inc.
The Canadian Chrome Company Inc. is an exploration stage company that is focused on identification, acquisition, consolidation, exploration, development and evaluation of large-scale deposits of minerals including chromite in the Ring of Fire, as well as other base metals and strategic minerals and, where applicable, in the development of transportation and electrification links to access remote areas where these deposits may be located.
For further information, please contact:
Bruce Hodgman, Vice-President: 416-642-3575 ~ info@canadachrome.com
Forward-Looking Statements: Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and CCC disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.
Disclaimer: Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this news release.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/265690
