European Electric Metals Announces Shares Consolidation and Shares for Debt Settlement
488-1090 West Georgia St. www.europeanelectricmetals.com
Vancouver B.C. Canada V6E3V7 [email protected]
Tel: 604-687-7130 TSX-V: EVX
July 8, 2020
{01655600;1}
NEWS RELEASE
European Electric Metals Announces Shares Consolidation and Shares for Debt Settlement
European Electric Metals Inc. (TSX-V: EVX) (OTC PINK: EVXXF) ("EVX" or "Company")
announces that the Board of Directors of the Company has authorized the implementation of a
consolidation the Company's issued and outstanding common shares on the basis of one new
common share for every ten existing common shares (the “Consolidation”). Currently, the
Company has 43,063,126 common shares issued and outstanding, and upon consolidation, there
will be approximately 4,306,312 common shares issued and outstanding (5,359,763 after the Debt
Settlement referred to below). No fractional shares will be issued under the Consolidation. Each
fractional share following the Consolidation that is less than one-half of one share will be cancelled
and each fractional share that is at least one-half of one share will be rounded up to the nearest
whole share.
The Company also announces that it has entered into shares-for-debt agreements, pursuant to which
the Company proposes to issue 10,534,500 common shares (pre-Consolidation) at an average
deemed price per common share of approximately $0.036 to settle $381,344 of indebtedness
currently owing to vendors and consultants ("Debt Settlement").
The Consolidation and Debt Settlement are subject to the TSX Venture Exchange acceptance. The
common shares issued pursuant to the Debt Settlement will be subject to a four month hold period
from the date of issuance.
The Company b elieves that the Consolidation and the Debt Settlement will improve its financial
position and help it to acquire a new project and secure future financings.
On behalf of the Company,
Fred Tejada, Chief Executive Officer and Director
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.
Disclaimer: There is no assurance either of the Consolidation or Debt Settlement will be completed on the terms outlined
above, or at all. Further, there is no assurance that completing the Consolidation and Debt Settlement will result in any
new business or project being acquired by the Company or that any future financing will be realized.