CoTec Holdings Converts Convertible Loans into Common Shares

CoTec Holdings Corp. (TSXV:CTH)(OTCQX:CTHCF) has announced the conversion of its amended convertible loan facilities totaling $4,000,000 into common shares. This follows approval from the TSX Venture Exchange. The loans were with Kings Chapel International Limited and Epic Capital Management Inc., collectively referred to as the Lenders.

At a conversion price of $1.33 per share, CoTec has issued 3,007,518 shares. Kings Chapel received 2,255,639 shares, while Epic Capital received 751,879 shares. Consequently, the loans are fully converted, with no outstanding principal remaining.

The transaction with Kings Chapel, an insider and control person of CoTec, is a related party transaction. It is exempt from formal valuation and minority shareholder approval under Multilateral Instrument 61-101, as it involves less than 25% of CoTec's market capitalization.