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MGX Renewables enters debt settlement, to pay $1.5M

2020-03-11 16:34 ET - News Release

Mr. Ron MacDonald reports


MGX Renewables Inc., doing business as Zinc8 Energy Solutions, has settled the debt claimed by MGX Minerals Inc. by agreement to pay to it $1.5-million over the next four months. MGX Minerals had previously claimed a higher amount, and the matter had been in dispute.

Also as part of the settlement, MGX Minerals has agreed to sell to Zimtu Capital Corp. 5.5 million shares of Zinc8 for $550,000 that are to be held in escrow and released over approximately two years. The remaining Zinc8 shares in escrow will be retained by MGX Minerals.

Zinc8 and Michael Reimann (board member) on one side and MGX Minerals and Jared Lazerson (board member) on the other have agreed to mutual releases of claims, including termination of outstanding litigation against Mr. Reimann by MGX Minerals.

Mr. Lazerson has resigned as a director of Zinc8, which has reached a severance agreement with Mr. Lazerson, who is also the former chief executive officer of Zinc8. Mr. Lazerson was terminated as CEO in September, 2019, having led the acquisition of Zinc8 from Teck Resources by MGX Minerals in December of 2017 and led the spinoff of the wholly owned subsidiary from MGX Renewables. Mr. Lazerson will on closing be paid 800,000 units at a deemed price of 38 cents per unit, each unit comprising one Zinc8 common share and one share purchase warrant. Each warrant is exercisable for two years at a price of 50 cents for one additional common share. This is in settlement of all claims by Mr. Lazerson.

The board of Zinc8 now is composed of Ron MacDonald, chief executive officer, Mr. Reimann, Lyndon Patrick and David Hodge.

About MGX Renewables Inc.

MGX Renewables (Zinc8) has assembled an experienced team to execute the development and commercialization of a dependable low-cost zinc-air battery. This mass storage system offers both environmental and efficiency benefits. Zinc8 strives to meet the growing need for secure and reliable power.

We seek Safe Harbor.

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