Xylitol Canada Inc. has entered into a shares for debt agreement with Andrew and Julie Reid. As per the agreement, Mr. and Mrs. Reid will receive an aggregate of 10,361,226 common shares of the company at a deemed issuance price of $0.075 per share to retire debt in the aggregate principal amount of $777,092.
The shares are to be issued over two closings. The first will include the issuance of 5,180,613 debt shares in respect of debt in the principal amount of $388,546. At this time, Mr. and Mrs. Reid will transfer 3,500,000 common shares of Xylitol to an arm’s length third party for value. The second closing will be comprised of 5,180,613 debt shares in respect of debt in the principal amount of $388,546. Concurrent with this, Mr. and Mrs. Reid will transfer 1,500,000 common shares of Xylitol to an arm’s length third party for value, provided that immediately following the second closing, Mr. and Mrs. Reid will hold an aggregate number of shares that is less than 20 per cent of all issued and outstanding common shares of Xylitol.
Should the second closing not occur on or before November 15, 2016, the Company will call a shareholder’s meeting to approve the issuance of 5,180,613 common shares to Andrew and Julie Reid and the creation of a new “Control Person” as is defined in the policies of the TSX Venture Exchange (TSXV).
About Xylitol Canada Inc.
Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America. Xylitol Canada’s business strategy is to leverage novel proprietary technology and processes to become North America’s premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is a natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75 per cent less carbohydrates and 40 per cent less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.
