Galantas Gold Corporation has cancelled shares and warrants issued to two marketing companies instead of payment in cash on order of the TSX Venture Exchange.
CHIEF EXECUTIVE
In March 2023 the company engaged Grit Capital Corp for 26 weeks to conduct advertising campaigns for a fee of US$65,000 plus HST*.
Galantas paid Grit an initial $5,000 in cash and $60,000 through units, comprising 228,333 common shares and 228,333 share purchase warrants via a private placing completed on 27 March 2023.
The Exchange stated that the compensation in shares was unacceptable and that payment should be in cash and the shares cancelled.
The company cancelled the warrants and chief executive Mario Stifano cancelled 228,333 common shares in Galantas owned by him.
As of today, Grit owns directly or indirectly 228,333 shares of the company and has no right or intent to acquire any additional shares.
The 228,333 shares and 228,333 Grit warrants were cancelled on February 27, 2024 and 228,333 shares will be cancelled on AIM on 5 March 2024.
Also in March 2023, Galantas engaged ABR Media for one year for a fee of C$36,000.
Galantas paid C$9,000 cash on closing of a private placement and C$27,000 through the issuance of units.
The operator of ABR subscribed for 77,777 shares and 77,777 warrants of Galantas under the private placement completed on 27 March 2023.
The Exchange requested cancellation of the units and Mr Stifano will cancel 77,777 shares owned by him.
Galantas said that ABR’s operator held no shares directly or indirectly of the company.
The 77,777 shares and 77,777 warrants were cancelled on the TSX Venture Exchange effectively 27 February 2024 and 77,777 shares will be cancelled on AIM on 5 March 2024.
The company added that the arrangements were at “arm’s length” with both marketing companies.
Following cancellation of Mr Stifano’s total 306,110 shares he will be interested in 156,445 shares representing 0.14% of the company’s issued share capital.
Galantas said that the March 2023 private placement for cash gross proceeds of $2,963,142.36 should have closed for $2,825,942.64.
Following cancellation of the 228,333 shares and the 77,777 shares, the company’s issued and outstanding shares number 114,535,293.
*harmonised sales tax