Mr. Rana Vig of Fireswirl reports
FIRESWIRL TECHNOLOGIES PROVIDES UPDATE ON TRANSACTION
WITH WEST PACIFIC VENTURES CORP.
Further to its news releases dated June 15, 2020, and Aug. 17, 2020, Fireswirl Technologies Inc. has entered into a business combination agreement dated Sept. 1, 2020, with West Pacific Ventures Corp., Revelo Resources Corp. and 1263621 B.C. Ltd. (a wholly owned subsidiary of the company). The agreement replaces the agreement previously entered into between the parties, containing the same terms and conditions, except that the company will acquire all of the outstanding shares of West Pacific by way of a three-cornered amalgamation instead of a share exchange. The shareholders of West Pacific will receive one common share in the capital of the company in exchange for each outstanding common share of West Pacific held by them, and, upon completion of the transaction, Revelo will own 19.9 per cent of the issued and outstanding shares of the resulting issuer.
West Pacific holds the right to acquire a 100-per-cent interest in eight copper-focused projects in northern Chile from Revelo pursuant to a property purchase agreement entered into between West Pacific, Revelo and Revelo's subsidiaries dated July 31, 2020. Additional information on the properties is available in the company's June 15, 2020, news release.
In connection with the transaction, the company and West Pacific will also complete a brokered private placement offering of a minimum of $4-million and a maximum of $6-million of subscription receipts of West Pacific on a commercially reasonable efforts basis. Additional information on the private placement is available in the company's Aug. 17, 2020, news release. Completion of the transaction is subject to completion of the private placement, approval for listing on the Canadian Securities Exchange and other customary conditions. Further details relating to the transaction will be available in a listing statement prepared in connection with the transaction.
The company has completed a bridge financing of 665,000 units at a price of 40 cents per unit for gross proceeds of $266,000, subject to approval by the TSX Venture Exchange. Each unit comprises one common share of the company and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the company at a price of 60 cents per share for a period of two years from the closing date. Proceeds of the bridge financing will be used to pay the costs associated with completion of the transaction and for general and administrative expenses.
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