Mr. Eugene Hodgson reports
EFFICACIOUS ELK CAPITAL CORP. ANNOUNCES TRANSITION TO NEW CPC POLICY
Efficacious Elk Capital Corp., further to its press release dated Jan. 27, 2021, has received the approval of the TSX Venture Exchange to make certain amendments as allowed by
Policy 2.4 of the exchange corporate finance manual effective Jan. 1, 2021, and as approved by the company's shareholders at its annual general and special meeting held on Jan. 20, 2021.
Requirement to move to NEX and cancel seed shares after 24 months
Currently, under the exchange's Policy 2.4 -- Capital Pool Companies (as at June 14, 2010), there are certain consequences if the company does not complete a qualifying transaction within 24 months of the listing date. These consequences include a potential for common shares to be delisted or suspended, or, subject to the approval of the majority of the Efficacious Elk shareholders, transferring common shares to list on the NEX and cancelling certain seed shares. The new CPC policy allows CPCs to remove these consequences assuming disinterested shareholder approval is obtained.
At the AGSM, a resolution (excluding the votes of shares held by those parties who own seed shares (as such term is defined in the policies of the exchange) and their associates and affiliates) was passed approving this change and pursuant to the exchange's approval, as received, Efficacious Elk will now proceed to implement this change.
CPC escrow agreement
The new CPC policy, assuming disinterested shareholder approval is obtained, allows amendments to the company's escrow agreement, including allowing the company's escrowed securities to be subject to an 18-month escrow release schedule as detailed in the new CPC policy, rather than the current up-to-36-month escrow release schedule in the old CPC policy.
At the AGSM, a resolution (excluding the votes of shares held by those parties who hold shares currently subject to the escrow agreement) was passed approving an amendment to the escrow release schedule to 18 months rather than 36 months, and, pursuant to the exchange's approval, as received, Efficacious Elk will now proceed to implement this change and amend its escrow agreement.
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