Mr. Sam Kenny of I-Pulse reports
EARLY WARNING REPORT FILED PURSUANT TO CANADA'S NATIONAL INSTRUMENT 62-10
On June 26, 2020, I-Pulse Inc.'s affiliate, High Power Exploration Inc. (HPX), acquired 256,361,139 Cordoba Minerals Corp. common shares by exercising all rights it had been issued in a rights offering conducted by Cordoba for existing Cordoba shareholders to acquire additional Cordoba common shares.
As consideration for entering into a standby agreement with Cordoba, detailed in I-Pulse's press release of May 19, 2020, HPX also acquired 21,910,113 warrants to acquire Cordoba common shares at an exercise price equal to 7.5 cents per Cordoba common share. These warrants represent 25 per cent of the Cordoba shares that HPX had committed to acquire under the standby agreement (not including any Cordoba shares acquired pursuant to HPX's basic subscription privilege in the rights offering).
Upon conclusion of the rights offering, Cordoba has reported that all Cordoba shares that HPX had committed to acquire under the standby agreement have been acquired by other Cordoba shareholders, and HPX is therefore not required to acquire any additional Cordoba shares other than the 256,361,139 Cordoba shares it acquired by exercising its own basic subscription privilege in the rights offering.
In addition, Cordoba has adjusted the price and quantum of previously issued warrants held by HPX that are exercisable for Cordoba common shares. Specifically, previously issued warrants to purchase 26,605,128 Cordoba common shares for 13 cents each have been adjusted by a ratio of 1.35417, and previously issued warrants to purchase 2.5 million Cordoba common shares for 12 cents each have been adjusted by a ratio of 1.36364. The warrant adjustment has adjusted HPX's warrants to purchase Cordoba common shares so that HPX now holds warrants (other than the standby warrants) to purchase 36,027,866 shares at 9.6 cents and 3,409,100 shares at 8.8 cents.
Further to the closing of the rights offering, HPX is now the owner of 531,510,102 Cordoba common shares, representing 59.6 per cent of Cordoba's outstanding common shares, and warrants to purchase an additional 61,347,079 Cordoba common shares. In the event that HPX exercised all warrants it holds for Cordoba common shares, it would then own Cordoba common shares representing 62.22 per cent of Cordoba's then outstanding common shares.
All of the securities described in this release as owned by, or to be subscribed by, HPX are, and will be, beneficially owned and controlled by I-Pulse.
I-Pulse, through HPX, has acquired these shares for investment purposes. Depending on economic or market conditions or matters relating to Cordoba, I-Pulse or HPX may choose to either acquire or dispose of additional Cordoba shares.
For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the transactions hereunder, please go to Cordoba's profile on the SEDAR website or contact Sam Kenny at 604-689-8765.
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