2018-2019
In August 2018, Ressources et Énergie Squatex Inc. reached a strategic milestone by announcing an agreement to settle its debts to 9129-2862 Québec Inc., a company owned by Jean-Claude Caron, President of Squatex. This transaction involved the issuance of 18,008,780 common shares at a price of $0.10 each, thereby covering a total debt of $1,800,878.09. The primary objective of this share issuance was to improve Squatex's financial situation by eliminating a significant portion of its accumulated debts.
What makes this share issuance particularly notable is that it was completed with a related party, Jean-Claude Caron. According to Regulation 61-101 on protection of minority security holders, this transaction benefits from an exemption from the formal valuation requirement and shareholder approval, due to the fair market value of the shares issued and their limited impact on Squatex's market capitalization (less than 25%).
The issued shares will be subject to a hold period of four months and one day, in accordance with applicable regulations, aimed at stabilizing the share value after their issuance. Following this transaction, Squatex's total number of outstanding shares will reach 123,850,656, with Jean-Claude Caron, through 9129-2862 Québec Inc., now holding 64.45% of the outstanding shares. This increase in Caron's stake demonstrates his continued confidence in the company and his commitment to its future development.
In conclusion, this share issuance marks a crucial step for Squatex in its strategy to reduce debt and clean up its finances. By eliminating a significant portion of its debts, Squatex strengthens its financial position, thus preparing itself for future growth and expansion opportunities.
Squatex's Clarification on the Position of the Quebec Oil and Gas Association (APGQ)
In November 2018, Squatex clarified its position regarding legal actions taken by the Quebec Oil and Gas Association (APGQ) against the Quebec government concerning hydrocarbon regulations. Squatex specified that it was not consulted on this approach and does not support this initiative.
Squatex emphasizes the importance of working closely with government authorities to develop sustainable and responsible projects, taking into account the needs of all stakeholders.
In 2019, Squatex and its partner Petrolympic Inc. decided to sue the Government of Quebec to claim restitution of annual fees collected since 2011 in connection with hydrocarbon exploration licenses. The collection of these fees despite the legal suspension constitutes an administrative injustice.
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