NOVEMBER 19, 2018 – Toronto, Ontario – Starrex International Ltd. (“Starrex” or the “Company”) (CSE: STX), (STXMF, OTCQB) announces that the Company has obtained a US$250,000 revolving accounts receivable line of credit from a lender wholly-owned by Garrett Clayton, a director and significant direct and indirect shareholder of the Company. The interest rate is 6% per annum, calculated daily. The line of credit matures in 12 months and is secured by accounts receivable.
The line of credit is a “related party transaction” within the meaning of such term in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on an exemption from the formal valuation requirement in MI 61-101 on the basis that the maximum loan amount is less than 25% of the market capitalization of the Company and Starrex shares are not listed on any of the prescribed exchanges in MI 61-101. The Company is relying on an exemption from the disinterested shareholder approval requirement in MI 61-101 on the basis that the value of the transaction is not greater than $2.5M CAD, the maximum loan amount is less than 25% of the market capitalization of the Company, Starrex shares are not listed on any of the prescribed exchanges in MI 61-101, and at least 66-2/3% of the independent directors approved the transaction.
“The $250,000 revolving accounts receivable line of credit will facilitate the continued strong growth in revenue for Starrex,” commented Matthew D. Hill, Chief Executive Officer of Starrex.
For further information, please contact Ronald Mann, Secretary, Investor Relations Officer of Starrex, at (647) 981-2782, email address: rmann@starrexintl.com.
Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this press release.