Prospero Provides Corrected Corporate Update
Vancouver, British Columbia--(Newsfile Corp. - February 24, 2021) - Prospero Silver Corp. (TSXV: PSL.H) (the "Company") provides the following summary update to shareholders.
This press release includes a correction of a typographical error in the commentary below under the heading Current Financial Position regarding the amount of the Company's current working capital deficit.
Capital Reorganization Efforts
As previously reported in December 2019, a Special Committee of the Company's Board of Directors reviewed and recommended, among other things, the Company cease mining exploration activities in Mexico. The Company accepted the committee's recommendations, ceased all such activities, disposed of its exploration assets to avoid ongoing obligations and commenced a reorganization of its capital so that it may consider new business opportunities in due course.
Towards that end, and as previously reported, the Company completed a 1 for 10 share consolidation in July, 2020 and then a further 1 for 3 share consolidation in February, 2021. The combined result was to reduce the number of issued and outstanding shares from 57,471,879 to 1,915,728.
As of this date there are:
no outstanding share purchase warrants; and
outstanding stock options as follows:
|Exercise Price||Number||Expiry Date|
|$1.50||5,500||March 4, 2021|
|$9.00||13,333||September 19, 2021|
|$7.80||59,000||May 24, 2022|
|$2.25||30,833||September 6, 2023|
Current Financial Position
The Company has no active business or assets and, at present, has negative working capital of approximately $295,000, as of this date, and not "$20,700", as initially reported in error.
In order to settle its current liabilities, pay ongoing expenses to maintain its share listing and, in due course, acquire and finance a new business opportunity, the Company will have to issue additional securities, which will result in further, and likely significant, dilution to investors.
Recent Share Trading
As a result of the cessation of its previous business operations, the Company's shares ceased to trade on the TSX Venture Exchange effective January 26, 2021, and its listing was transferred to the NEX Board, where it is expected to remain until such time the Company successfully completes a reactivation plan that includes the acquisition of a qualified asset or new business. The NEX Board provides a trading forum for listed companies that have fallen below TSX Venture's minimum listing standards.
At the close of business yesterday the Company had a market capitalization of $1,149,436. The Company does not presently have any agreement to acquire assets or a business and is not aware of any reason why the Company's shares are trading at its current share price.
The Company's Board of Directors will be seeking to settle existing debts and secure financing to stabilize the Company's financial position. If successful, the Company will then seek to acquire qualified assets or a business, which may result in a change in control of the Company.
There are no assurances the Company will be able to settle debts, secure necessary financing or acquire assets or a business on terms acceptable to the Company or on any terms.
The Company may, from time to time, provide updates regarding its progress. However, except to the extent required by applicable securities laws and the policies of the NEX board of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements.
For additional information readers are referred to the Company's disclosure documents, including, but not limited to, the Company's audited and quarterly unaudited financial statements, which can be accessed at www.sedar.com.
On behalf of the Board of Directors
President, CEO and Director
Tel: (604) 551-7505
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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