EARLY WARNING NEWS RELEASE PURSUANT TO NATIONAL INSTRUMENTS 62-103 AND 62-104
TORONTO, Oct. 15, 2021 /CNW/ - Dmyant Sangha ("Sangha") has today filed an early warning report (the "Early Warning Report") advising of his holdings in common shares ("Common Shares") of Cornerstone Capital Resources Inc. ("Cornerstone"). The Early Warning Report amends information disclosed in an earlier report filed by Sangha dated April 1, 2020.
On October 15, 2021, Sangha and Maxit Capital LP ("Maxit"), a controlled affiliate of Sangha, acquired an aggregate of 655,000 outstanding Common Shares (the "Purchased Shares"), representing approximately 1.78% of the issued and outstanding Common Shares (on a non-diluted basis), in the open market through the facilitates of the TSX Venture Exchange (the "Transaction"). Of the Purchased Shares, 440,000 Common Shares were acquired by Maxit and 215,000 Common Shares were acquired by Sangha.
Prior to the Transaction, Sangha, together with Maxit, owned 6,529,993 Common Shares and 200,000 options to purchase Common Shares, all of which were exercisable to purchase Common Shares as of, or within 60 days of, the Transaction. Accordingly, prior to the Transaction, Sangha, together with Maxit, beneficially owned 6,729,993 Common Shares, representing beneficial ownership of approximately 18.22% of the outstanding Common Shares (calculated on a partially-diluted basis). On October 15, 2021, Sangha and Maxit acquired the Purchased Shares, representing approximately 1.78% of the issued and outstanding Common Shares (on a non-diluted basis). As a result of the Transaction, Sangha, together with Maxit, beneficially own 7,384,993 Common Shares, consisting of 7,184,993 Common Shares and 200,000 options to purchase Common Shares, representing 19.99% of the outstanding Common Shares (calculated on a partially-diluted basis).
Sangha and Maxit acquired the Purchased Shares at a price of $3.75 per share for aggregate consideration of $2,456,250.
The Purchased Shares were acquired for investment purposes. Depending on various factors, including, without limitation, market conditions, general economic and industry conditions, Cornerstone's business and financial condition and/or any other factors that Sangha may deem relevant, Sangha may take such actions with respect to his investment in Cornerstone as he deems appropriate including, without limitation, (i) acquiring, exercising, converting, exchanging, selling or otherwise disposing of securities of Cornerstone or securities exercisable for, or convertible or exchangeable into, securities of Cornerstone and/or (ii) developing plans or intentions or taking actions which relate to or would result in one or more of the transactions or matters referred to in paragraphs (a) through (k) of Item 5 of the Early Warning Report filed on www.sedar.com.
This news release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues and National Instrument 62-104 – Take-Over Bids and Issuer Bids and relates to: (i) the Common Shares of Cornerstone, whose head office is located at 1730 St. Laurent Blvd., Suite 800, Ottawa, Ontario, K1G 3Y7; and (ii) Sangha at 181 Bay Street, Suite 830, Toronto, ON, M5J 2T3.
SOURCE Dmyant Sangha
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