Usha, Totec file supplemental disclosure for QT

Executive Summary
- Totem Resources Ltd. will acquire Usha Resources Ltd.’s interest in Subco (1540359 B.C. Ltd.) and the White Willow mineral claims for $50,000 cash plus 5.5 million Totem common shares at a deemed price of C$0.15 per share.
- The transaction is classified as a qualifying transaction on the TSX‑V but involves non‑arm’s‑length parties; it does not require disinterested shareholder approval under TSX‑V policies.
- Concurrent financing for Subco has been increased to up to 30 million units at C$0.15 per unit, targeting gross proceeds of up to $4.5 million, with each unit including a common share and a warrant (exercise price C$0.25, two‑year term).
Key Details
- Consideration:
- Cash payment of $50,000 to Usha.
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Issuance of 5.5 million Totem common shares to Usha (post‑consolidation basis 1:2) at a deemed price of C$0.15 per share.
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Non‑Arm’s‑Length Nature:
- Deepak Varshney – CEO & Director of Totem, also CEO of Usha; holds 2,169,500 Usha shares (2.4 % of Usha).
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Khalid Naeem – CFO of Totem, also CFO of Usha; holds no Usha shares.
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Regulatory Assessment:
- Transaction is non‑arm’s‑length but not a related‑party transaction under MI 61‑101.
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Neither Varshney nor Naeem are “control persons” for both entities, so the deal does not trigger TSX‑V Policy 5.9 or require disinterested shareholder approval.
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Concurrent Financing Upsize:
- Original: up to 28 million units at C$0.15/unit → max $4.2 M gross proceeds.
- Revised: up to 30 million units at C$0.15/unit → max $4.5 M gross proceeds.
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Each unit = 1 Subco common share + 1 warrant (right to purchase an additional share at C$0.25, exercisable for two years).
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Trading Halt:
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Totem’s shares are halted pending compliance with TSX‑V Policy 2.4; no guarantee of resumption before transaction completion.
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Company Status:
- Totem is a capital pool company on the TSX‑V, has not commenced commercial operations and holds only cash.
- Usha is an exploration company focused on battery and precious‑metal properties.
Notable Quotes
(No direct quotes were provided in the release.)