Coloured Ties Announces Loan Agreements
TSXV - TSX Venture Exchange · Gold · Oil · Financing
Vancouver, British Columbia--(Newsfile Corp. - April 26, 2024) - Coloured Ties Capital Inc. (TSXV: TIE) (OTC Pink: APEOF) (FSE: 97A0) ("CTI" or the "Company"), at the request of the TSX Venture Exchange, provides the following clarifying news release with respect to certain loan agreements entered into by the Company during the fiscal year 2023.
The Company entered into a loan agreement dated March 1, 2023 (the "FLELoan Agreement") with Flowing Lithium Exploration Inc. ("FLE"), pursuant to which the Company agreed to lend FLE CDN$300,000.00 (the "FLELoan"). The FLE Loan beared interest at a rate of 4.0% per annum and was due in full on December 31, 2023. The loan was repaid in full on December 8, 2023. The loan to FLE was not considered an arm's length transaction as Rauni Malhi, a 10% insider of the Company, is also a control person of FLE. The loan to FLE constitutes a "related party transaction" as defined in Multilateral Instrument 61-101 - _Protection of Minority Securityholders in Special Transactions_("MI 61-101"). The Company is relying on the exemption from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(a) of MI 61-101, respectively, as the loan does not represent more than 25% of the Company's market capitalization, as determined in accordance with MI 61-101.
Additionally, the Company entered into a loan agreement dated June 1, 2023 (the "CanuckLoan Agreement") with Canuck Lithium Corp. ("Canuck"), pursuant to which the Company has agreed to lend Canuck CDN$265,000.00 (the "CanuckLoan"). The Canuck Loan shall bear interest at a rate of 4.0% per annum and is due in full on December 31, 2024 a date which was extended form the original due date of December 31, 2023 The loan to Canuck was not considered an arm's length transaction as Christopher Cooper, a director of the Companywas a Director of Canuck at the time of the loan. The loan to Canuck constitutes a "related party transaction" as defined in Multilateral Instrument 61-101 - _Protection of Minority Securityholders in Special Transactions_("MI 61-101"). The Company is relying on the exemption from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(a) of MI 61-101, respectively, as the loan does not represent more than 25% of the Company's market capitalization, as determined in accordance with MI 61-101.
FLE and Canuck are arm's length from each other.
The Company is continuing to work with the TSX Venture Exchange to return to trading in the near future and will provide updates on the status as obtained from the TSX Venture Exchange.
For further information please contact:
Coloured Ties Capital Inc. Kal Malhi Chief Executive kal@bullruncapital.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/207124
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