Vendome Resources Announces Consolidation, Debt Settlement and Issuance of Options
TORONTO, ONTARIO--(Marketwired - Sep 27, 2016) - Vendome Resources Corp. (the "Company") (TSX VENTURE:VDR)(FRANKFURT:9VR) announces that effective September 28, 2016 at market open, the Company will consolidate its common shares on the basis of one (1) new post-consolidation common share for every ten (10) pre-consolidation common shares. The Company's common shares will begin trading on a post consolidated basis on the TSX Venture Exchange on September 28, 2016.
As a result of the consolidation, the Company's currently outstanding 139,307,795 common shares will be reduced to 13,930,773 common shares. No fractional shares will be issued. Any fractions of a share will be rounded to the nearest whole number of common shares. The Company's name and trading symbol will remain unchanged. The consolidation was approved by the shareholders of the Company on September 6, 2016 and accepted by the TSX Venture Exchange on September 26, 2016.
The Company's new CUSIP number is 922626205 and the new ISIN number is CA9226262058.
Registered shareholders will be required to exchange their share certificates representing pre- consolidation common shares for new share certificates representing post-consolidation common shares. Registered shareholders will be sent a transmittal letter, as soon as practicable after the effective date of the consolidation. The letter of transmittal will contain instructions on how certificate(s) representing pre-consolidation shares may be surrendered to the Company's transfer agent, Capital Transfer Agency Inc. The transfer agent will forward to each registered shareholder who has provided the required documents a new share certificate representing the number of post-consolidation common shares to which the shareholder is entitled. Until surrendered, each share certificate representing pre-consolidation common shares of the Company will be deemed for all purposes to represent the number of whole post-consolidation common shares to which the holder is entitled as a result of the consolidation. Copies of the letter of transmittal may be obtained from the Company at c/o Garfinkle Biderman LLP, 1 Adelaide Street East, Suite 801, Toronto, Ontario M5C 2V9 by mail or info@vendomeresourcescorp.com.
Debt Settlement
In connection with the Company's effort to restructure, the Company has also negotiated debt settlement agreements with various creditors. The outstanding debt with the creditors will be extinguished through reduction of current debt from approximately $187,778.69 to $130,000 and the issuance of shares on a post-consolidation basis (the "Debt Settlement"). The company has agreed to settle the reduced amount of the debt in exchange for the issuance of an aggregate of 650,000 post-consolidated common shares. The debt settlement will be based on a deemed price of $0.20 per share on a post-consolidated basis.
The Company will close the Debt Settlement and issue the Common Shares once the Consolidation has been completed and the Debt Settlement documentation has been accepted and approved by the Exchange. The Common Shares issued pursuant to the Debt Settlement will be subject to a four-month hold period.
Granting of Options
In addition, the Company is pleased to announce that the Company has granted 1,050,000 incentive stock options to various Employees, Directors and a Consultant. The options are exercisable at $0.20 per option, on a post-consolidation basis, for a period of 3 years from the date of grant and have no vesting conditions. The options are being issued under the terms of the Company's Stock Option Plans which were approved by shareholders at the Company's Annual General and Special Meeting on September 6, 2016.
About Vendome:
Vendome is a mineral exploration company located in Toronto, Ontario, Canada. Our primary focus is to acquire "near-term production" exploration mining projects and existing producers. Vendome Resources Corp. is managed by an experienced team of mining professionals with extensive operating and financial experience.
About Vendome:
Vendome is a mineral exploration company located in Toronto, Ontario, Canada. Our primary focus is to acquire "near-term production" exploration mining projects and existing producers. Vendome Resources Corp. is managed by an experienced team of mining professionals with extensive operating and financial experience.
ON BEHALF OF THE BOARD OF DIRECTORS OF VENDOME RESOURCES CORP.
W. John Priestner, President and Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements:
Neither 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 release.
Contact
Vendome Resources Corp.
W. John Priestner
President and Chief Executive Officer
info@vendomeresourcescorp.com