Dr. Georg Josef Pollert Announces an Increase in His Ownership of Securities of Blue Star Gold Corp.
July 03 2020 - 8:17PM
Dr. Georg Josef Pollert (the
“
Acquiror”), a director and principal shareholder
of Blue Star Gold Corp. (the “
Company”) announces
that on July 3, 2020, pursuant to a private placement (the
“
Private Placement”), he acquired ownership of
3,175 Units of the Company at a price of $1,000 per Unit.
Each Unit consists of 20,000 Debentures and 20,000 Warrants,
with each Warrant exercisable into common shares of the Company
(“
Shares”) at an exercise price of $0.075 per
Share until July 3, 2023 (the “
Maturity Date”).
As a result of the acquisition of the 3,175
Units, the Acquiror was issued Debentures in the principal amount
of $3,175,000 and 63,500,000 Warrants.
The Debentures bear an interest rate of 7.5%
calculated annually. The interest is payable in advance for
each year from the date of issuance such that the first year’s
interest will be payable on the first day after the date of
issuance. Subject to the approval of the TSX Venture Exchange and
until the Maturity Date, the interest payment will be satisfied
through the issuance of Shares to the Acquiror in a number that is
equivalent to a simple annual interest rate of 7.5% based on the
market price of the Company’s Shares at the due date.
The Debentures are convertible into Shares, at
no additional consideration to the Acquiror, at a price of $0.05
per Share during the first year and $0.10 per Share during the
second and third years. The number of Shares to be issued on
conversion of the interest is dependent on the trading price of the
Shares at the time of conversion.
Prior to the closing of the Private Placement,
the Acquiror held 35,695,542 Shares, 1,000,000 Options, 34,000,000
Warrants and 44,000,000 Debentures and was conditionally entitled
to receive a maximum of 5,435,542 loan bonus shares (“Loan
Bonus Shares”) under the terms of an existing loan
agreement between the Company (as borrower) and the Acquiror (as
lender). Prior to the closing of the Private Placement, the
Acquiror’s non-diluted shareholdings represented approximately
25.03% of the Company’s issued and outstanding Shares.
As a result of closing of the Private Placement
on July 3, 2020 and issuance of 3,175 Units, the Acquiror now holds
35,695,542 Shares, 1,000,000 Options, 97,500,000 Warrants and
107,500,000 Debentures and is conditionally entitled to receive a
maximum of 5,435,542 Loan Bonus Shares. The Acquiror’s
non-diluted shareholdings now represent approximately 25.03% of the
Company’s issued and outstanding Shares.
Thus on a partially diluted basis (i.e.,
assuming full exercise of all Warrants and Options, full conversion
of all Debentures by the Acquiror, receipt by the Acquiror of the
maximum number of Loan Bonus Shares, and no other issuances of
Shares by the Company), the Acquiror would hold a total of
247,131,084 Shares, representing approximately 69.8% of the
Company’s issued and outstanding Shares.
The Units were acquired by the Acquiror for
investment purposes. The Acquiror may increase or decrease
its ownership of securities of the Company as the circumstances or
market conditions warrant.
To obtain a copy of the early warning report
filed by the Acquiror, please contact the Acquiror at
011.49.172.946.1380 or refer to the Company’s SEDAR profile at
www.sedar.com.