Mr. Lawrence Wilder reports
ACASTA CONFIRMS FORFEITURE OF CERTAIN FOUNDERS SHARES
Acasta Enterprises Inc., pursuant to the terms of the amended and restated forfeiture conditions and transfer restrictions agreement and undertaking entered into on Jan. 3, 2017, will forfeit and cancel for no consideration an aggregate of 5,221,020 Class B shares held by the original founders of Acasta and certain transferees. This forfeiture and cancellation will reduce Acasta's outstanding share count to 64,994,278 Class B shares.
These Class B shares were issued to the original founders of Acasta prior to its initial public offering on July 22, 2015, and were acquired from treasury for consideration of 0.24 cent per share. Each of the original founders and their permitted transferees became parties to the forfeiture agreement and are subject to its terms.
Pursuant to the terms of the forfeiture agreement, 50 per cent of the founders shares are non-transferable in most cases and are forfeited to Acasta in the event that the corporation fails to: i) secure commitments of $1-billion for its private equity fund; and ii) achieve a consumer products value realization event (as defined in the forfeiture agreement), prior to Jan. 3, 2019. As neither of these conditions have been achieved and will not be achieved by Jan. 3, 2019, Acasta is taking steps to ensure that the required number of founders shares are forfeited in accordance with the forfeiture agreement and is following up with the relevant shareholders in this regard.
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