Michael Stein Announces Acquisition of Debenture of Loon Energy Corporation

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Toronto, Ontario--(Newsfile Corp. - June 30, 2022) - This press release is being disseminated as required by National Instrument 62 103 - The Early Warning System and Related Take Over Bid and Insider Reporting Issues in connection with the filing of an early warning report (the "Early Warning Report") regarding the acquisition of a secured convertible debenture (the "Debenture") of Loon Energy Corporation (the "Company" or "Loon") by Michael Stein and his affiliates ("Acquiror") in the amount of $165,167.

The Debenture bears interest at a rate of twelve percent (12%) per annum and the principal amount thereof becomes due and payable on December 30, 2022 (the "Maturity Date"). Interest on the principal amount of the Debenture shall be due in quarterly instalments on March 31, June 30, September 30 and December 31. All or any portion of the outstanding principal amount of indebtedness or any outstanding interest payments under the Debenture will be convertible at the option of the holder into common shares of the Corporation at a conversion price of $0.05 per share at any time prior to the Maturity Date. The Debenture and any securities issued pursuant hereto will be subject to a regulatory hold of four months and a day from the date of issuance.

The Acquiror is an insider of the Company by virtue of his position as past senior officer of the Company and through his ownership of approximately 3,610,990 (35.2%) of the Company's common shares. At closing of the Settlement, Acquiror continues to hold the same number of common shares, but if he and the company he controls converted the Debenture, then they would hold approximately 6,914,330 (51%) of the Company's then issued and outstanding common shares.

The common shares were acquired for investment purposes. The Acquiror may, from time to time, take such actions in respect of its holdings in securities of the Company as it may deem appropriate in light of the circumstances then existing, including (i) acquiring, exercising, converting, exchanging, selling or otherwise disposing of securities of the Company or securities exercisable for, or convertible or exchangeable into, securities of the Company, and (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 SEDAR. A copy of the Early Warning Report can be obtained at www.sedar.com under the Company's company profile.

For further information please contact Michael Stein at Tel: 416-410-7722 or Michael.stein@rogers.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/129612

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