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Arcland shares to be reinstated July 29

2021-07-27 17:45 ET - News Release

Mr. Edward Posey reports


Arcland Resources Inc. has applied to the TSX Venture Exchange to reinstate trading on the NEX following the revocation order previously announced in the news release dated March 15, 2021.

The company sought a reinstatement application now rather than when it was issued its first revocation order dated on Nov. 28, 2019, because at the time of the first revocation order, the company was not in the financial position to make a reinstatement application to the NEX as it was experiencing serious financial hardship as can be seen by its annual financial statements for the year ended Nov. 30, 2019, and interim financial statements for the period ended March 31, 2020.

Between the first revocation order and the cease trade order dated April 9, 2020, the company was inactive. As a result, the company was not in the position to receive any loan or to find a reactivation transaction.

Reinstatement to trading

The company anticipates that its common shares will be reinstated for trading on or about July 29, 2021. Further to its press release of May 14, 2021, once reinstated, the company intends to proceed with the following, subject to regulatory approval: (i) to consolidate all of its issued and outstanding common shares on the basis of one for four; (ii) to complete the non-brokered equity financing of up to $500,000 at a postconsolidation price of five cents per common share; and (iii) to settle up to $100,000 of indebtedness by issuing common shares at a postconsolidation price of five cents per common share. The consolidation, financing and debt settlement are subject to further exchange review and acceptance.

Corporate update

The company accepted Xiufen (Jane) Liu's resignation letter on July 15, 2021. Ms. Liu has resigned her role as director for personal reasons, and the company would like to thank her for her efforts for the company and wish her all the best in the future.

Further to the company's press release dated March 15, 2021, Yan Zhang, a former director and former chief executive officer of the company, had continued in his role as CEO after resigning as chief financial officer on Sept. 29, 2020. Mr. Zhang ceased his duties as CEO upon the appointment of Edward Posey as CEO and director on May 14, 2021.

Further to the company's press release dated May 14, 2021, the appointment of Mr. Posey as CEO and as an additional director to the board of directors of the company was in accordance with the articles of the company that allows for the appointment of an additional director between annual general meetings of the company as long as the number of additional directors does not exceed one-third of the number of directors on the current board.

Further to the press release dated Nov. 26, 2020, where the company announced its entry into a non-binding letter of intent dated Nov. 25, 2020, with SW Tech Corp. and where Arcland and SW Tech agreed to a non-refundable payment of $50,000 to Arcland by SW Tech for payment of Arcland's professional fees and out-of-pocket expenses in connection with the proposed transaction, SW Tech had previously made the payment to Arcland upon entry into the letter of intent.

Further to the press releases dated Nov. 26, 2020, and May 14, 2021, where the company announced the expiry and termination of the letter of intent since Arcland and SW Tech did not enter into a definitive agreement before the deadline for doing so, the proposed transaction pursuant to the letter of intent which would have constituted a reverse takeover under the policies of the exchange will not proceed and has been terminated, effective Jan. 31, 2021.

The company plans to take steps to arrange for further financing to better enable it to seek new opportunities for business development and growth to maximize shareholder value.

We seek Safe Harbor.

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