Stem 7 Capital Arranges Private Placement, Debt Settlement and Appoints New Director
NEWS RELEASE
Stem 7 Capital Arranges Private Placement, Debt Settlement and Appoints New Director
April 13, 2017 – Vancouver, B.C. - Stem 7 Capital Inc. (the “Company”) (TSXV-STS.H) announces that it has arranged a non-brokered private placement consisting of up to 7,500,000 units at a price of $0.05 per unit for proceeds totaling up to $375,000. Each unit will consist of one share and one full warrant, exercisable at $0.10 per share, expiring 12 months from the closing of the private placement.
The Company also announces that it has reached agreement with Sun Tzu Ventures Inc. (wholly owned by Dave McMillan, CEO), to loan the company $90,000 which will be used to pay all the Company’s existing liabilities as of February 28, 2017. The loan will be unsecured and non-interest bearing. This loan will be settled by the issuance of 1,200,000 common shares to Sun Tzu Ventures at a deemed value of $0.075 per share.
Mr. McMillan also announces that he has sold 4,000,000 common shares of the Company at an average price of $0.05025 per share for total consideration in the amount of $201,000. Mr. McMillan expects to participate in the private placement described herein and the sale was made to provide funds for a portion of such private placement and to provide funds to the Company by way of a loan (described above), to satisfy all existing liabilities of the Company as of February 28, 2017. The disclosure respecting Mr. McMillan’s share disposition contained in this press release is made pursuant to Multilateral Instrument 62-104 and a report respecting the above will be filed with the applicable securities commissions using the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) and will be available for viewing at www.sedar.com.
After giving effect to the proposed private placement and debt settlement and subject to the acceptance of the NEX Board of the TSX Venture Exchange, the Company will have an aggregate of 15,633,000 shares issued and outstanding and a minimum of $350,000 in working capital. All shares issued pursuant to the private placement and debt settlement will be subject to a four month hold from the closing date.
The Company also welcomes Mr. Eric Allison to the Board of Directors. Mr. Allison has over 36 years of experience in the natural resource industry working in various technical, business and project development and management roles. He currently provides consulting services to a variety of companies, funds, project developers and individuals on a global basis. He formerly served, from 2012-2015, as CEO and COO of Brazahav Resources, a private entity developing a brownfield gold mine project in Mato Grosso, Brazil. Prior to this, he was the Director of Research and Chief Geologist at Casimir Capital LP specializing in junior mining companies. Previously, he was a Director of Business Development at Sempra Commodities from 1999-2009 where his responsibilities included Metals & Concentrates and Energy. Over his career, Eric has also served in various roles for Cyprus Amax Minerals, Amax Energy, SPG Exploration and Texaco. He has served on the boards of several private and public companies. Mr. Allison received a BS in Geology from Brown University (1978) and a MS in Marine Geology from the University of Georgia (1980).
The Company is pleased to fund the treasury, settle existing debt and strengthen the Board of Directors. With the assistance of our new Director, Mr. Allison, we anticipate sourcing and reviewing projects of merit to enhance shareholder value.
On behalf of the Board
Dave McMillan Chairman & CEO
For additional information, please contact:
Dave McMillan Chairman & CEO Tel: 1-778-773-4560 Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.