Mapath arranges $1-million private placement

Executive Summary

• Mapath Capital Corp. announced a non‑brokered private placement of up to 20 million common shares at $0.05 per share, targeting gross proceeds of up to $1 million.
• The company also arranged a shares‑for‑debt exchange, issuing 568,000 common shares (at the same $0.05 price) to settle $28,400 of non‑cash payables on two convertible debentures.
• Proceeds will be used for working capital and repayment of existing debt; insiders will purchase an additional 800,000 shares in the offering.

Key Details

• Private Placement: Up to 20 million common shares offered at $0.05 per share → maximum gross proceeds $1 million.
• Use of Proceeds: Working capital and repayment of debt. No finders’ fees will be paid.
• Regulatory Hold: All securities issued (placement + shares‑for‑debt) subject to a four‑month‑plus‑one‑day hold period per TSX‑V rules and Canadian securities law.
• Shares‑for‑Debt Transaction:
• Issuance of 568,000 common shares at $0.05 per share.
• Settlement of $28,400 non‑cash payables related to two convertible debentures:
  • Debenture 1 – principal $20,000, accrued interest $4,000.
  • Debenture 2 – principal $12,000, accrued interest $2,400.
• Insider Participation: Two insiders intend to purchase a total of 800,000 offered shares and will receive the 568,000 shares from the debt settlement.
• Exemptions Relied Upon: Multilateral Instrument 61‑101 sections 5.5(b) and 5.7(1)(a) for valuation and minority shareholder approval requirements.

Notable Quotes

(No direct quotes were provided in the release.)