Vancouver, British Columbia – (June 18th, 2019) – BioMark Diagnostics Inc. (“BioMark”) (CSE: BUX); (FSE: 20B); (OTCMKTS: BMKDF) is pleased to announce that it has arranged a voluntary debt to share settlement (the “Debt Settlement”) with certain directors and officers of the Company in connection with existing indebtedness related to services provided to the Company by such directors and officers (and for which amounts had accrued as reflected in the Company’s financial statements but which had not been paid).
Pursuant to the Debt Settlement, the Company will issue a total of 1,000,000 common shares (the “Debt Shares”) at a deemed price of $0.15 per Debt Share in settlement of the indebtedness in aggregate amount of $150,000. No Warrants were issued in connection with the debt settlement.
Rashid Ahmed, CEO of BioMark commented, “We have chosen to increase our equity stake in BioMark as a show of confidence in our future. We are witnessing increased interest in the science and potential of metabolomics from both the medical and investment communities. As one of the leaders in metabolomics research and cancer diagnostics, we remain confident that our science and technology can have a significant impact on the lives of many people. In addition, The Company is choosing to settle the indebtedness through the issuance of Shares to preserve cash and improve the Company’s balance sheet as it enters a new and exciting phase of growth.”
The issuance of the Debt Shares will not result in the creation of any new control person. The Debt Shares will be subject to a four month plus 1 day hold period.
The above transaction contemplates a related party transaction as Debt Shares will be issued to directors and officers of the Company. The Company is relying on an exemption from minority shareholder approval under Multilateral Instrument 61-101 on the basis that participation by insiders does not exceed 25% of the fair market value of the Company’s market capitalization.