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ProtoKinetix Announces Settlement of Debt 10:23 AM ET, 03/09/2015 - Business Wire
ST. MARYS, W. Va.--(BUSINESS WIRE)--Mar. 9, 2015-- ProtoKinetix, Incorporated (OTC: PKTX) (www.protokinetix.com) today announced that it has retired its two largest debts to its largest creditor.
On March 2, 2015, ProtoKinetix, Incorporated, a Nevada corporation (“ProtoKinetix”) entered into a Settlement and Indemnity Agreement by and between ProtoKinetix, Standard Bankcorp Inc. (“Standard Bankcorp”), and Mark Ralston to extinguish certain of ProtoKinetix’s debts (the “Settlement Agreement”) as approved by the Company’s Board of Directors.
The Settlement Agreement provides for cancellation of a convertible promissory note in the amount of $300,000 with accrued interest of $84,000 with Standard Bankcorp in exchange for issuing 3,840,000 shares of ProtoKinetix common stock to Standard Bankcorp at a deemed price of $0.10 per share as negotiated with Standard Bankcorp to satisfy the first debt. For a period of 18-months, the Company retains a right of first refusal for the shares such that when the Standard Bankcorp intends to sell any shares, the Company will have 30 days in which to buy such shares back or find another buyer.
The Settlement Agreement also provides for payment of $161,750 in cash to Standard Bankcorp to satisfy the second debt, which was incurred by the Company as a short-term loan. The Company will pay $60,000 of the second debt directly to Clarence E. Smith, the Company’s President and Chief Executive Officer in satisfaction of a debt incurred by Standard Bankcorp to Mr. Smith.
By repaying these debts, the Company is better position to pursue financing in the future. “The retirement of these debts is a significant milestone to clean up our balance sheet,” said Clarence E. Smith, President and Chief Executive Officer. “ProtoKinetix is well positioned to pursue the execution of our long-term business strategy.”
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