Indiva Settles $172K Debt Through Shares For Debt Agreement

Indiva Limited NDVAF NDVA has entered into an equity agreement to satisfy a total of $172,075.98 of the Company’s outstanding debt in respect of accrued but unpaid portions of the outstanding interest payments under certain of the Company’s convertible bonds, as well as certain product trade payables and services provided to the company.

A total of 1.01 million common shares in the capital of the company at an assumed price of $0.17 per share is proposed to be issued to the creditor. The creditors include certain related parties of the company, including Niel Marotta, the company’s CEO and a director, Jennifer Welsh, the company’s CFO, and Rachel Goldman, a company president. Any other creditor is a business party that has subscribed to the company’s convertible bonds.

The company offered all bondholders the option to choose to receive common stock of the company instead of a cash payment in order to keep its money for the development of its company. The shares will be issued upon acceptance by the TSX Venture Exchange. The shares issued under the Debt Agreement Shares are subject to a four month plus one day holding period in accordance with the policies of the TSX Venture Exchange.

The shares for debt transactions involving the related parties constitute a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Shareholders in Special Transactions (“MI 61-101”). However, the issuance is exempt from: the valuation requirement of MI 61-101 under the exemption contained in section 5.5(b), as the shares are not listed on a market specified in MI 61-101, and the minority shareholder approval requirement of MI 61-101 pursuant to the exemption contained in section 5.7(1)(a) of MI 61-101, as the fair market value of the shares does not exceed 25% of the company’s market capitalization. The related parties’ participation in the debt transaction shares has been approved by directors of the company who are independent in connection with such transaction.

Photo by Mackenzie Marco on Unsplash

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