Nio-Star Corp., Conveys Secured Property to RD Volusia LLC
Sarissa Resources Inc. (OTC-Pink: SRSR) announced that its subsidiary, Nio-Star Corp, failed to cure a default on a Convertible Note from RP Capital Group Inc., which was officially served on March 17, 2021.
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Rhea-AI Summary
Sarissa Resources Inc. (OTC-Pink: SRSR) announced that its subsidiary, Nio-Star Corp, failed to cure a default on a Convertible Note from RP Capital Group Inc., which was officially served on March 17, 2021. Nio-Star was required to repay $C384,058.51 within five days but could not secure necessary funding. As a result, on March 23, 2021, Nio-Star transferred all its assets, including patented land and mining leases, to RD Volusia LLC. The Nio-Star Board indicated that RD Volusia may renegotiate depending on the outcomes of the upcoming shareholder meeting.
Positive
- Possibility of renegotiation with RD Volusia LLC.
- Transparency from Nio-Star's Board regarding the situation.
Negative
- Default on a Convertible Note leads to significant asset loss.
- Transfer of all Nio-Star assets could hinder future projects.
- Potential shareholder unrest due to past allegations against board candidates.
Details
News Market Reaction – SRSR
The recorded move for SRSR in the trading session of this news was -10.17%.
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TORONTO, March 24, 2021 /PRNewswire/ -- Sarissa Resources Inc. (OTC-Pink: SRSR) ("Sarissa" or the "Company") is advising its shareholders that the Company's Nio-Star Corp ("Nio-Star") subsidiary was not successful in curing the default on the Convertible Note issued to RP Capital Group Inc. Official notice of that default was served on March 17, 2021 by RD Volusia LLC ("RD Volusia") an assignor of the Convertible Note issued to RP Capital Group Inc. As a result, on March 18, 2021, the Company announced the default and the notice of such default in a press release. Pursuant to the terms of the Convertible Note and the default notice, Nio-Star had 5 days to cure the default.
Nio-Star was unable to secure the capital required to repay the required $C384,058.51 or negotiate an alternative solution prior to the five day deadline. On March 23, 2021, Nio-Star conveyed the Secured Property to RD Volusia as required as a condition of the terms of the Convertible Note. The Secured Property of Nio-Star entails all assets of Nio-Star including the patented land and mining leases.
The Nio-Star Board stated, "While this outcome was not what we hoped for, during negotiations RD Volusia has indicated that while it has already taken possession of the Secured Property of Nio-Star, it is open to renegotiating with the board of Nio-Star depending on the outcome of the upcoming Sarissa shareholder meeting. RD Volusia has made it clear that it will not renegotiate a potentially more favorable outcome for Sarissa shareholders, if the shareholders vote to elect the directors put forth by Mr. Currah, et.al., to the board of Sarissa at the upcoming shareholder meeting due to a history of securities fraud charges and settlements as well as allegations of securities fraud while previously involved with Sarissa which are pending in Ontario Superior Court."
Nio-Star's board will continue to provide updates as further developments occur in this matter.
About Sarissa Resources Inc.
Sarissa Resources Inc. is a mining development company presently focuses on developing the Nemegosenda Niobium project through its Nio-Star Corp., subsidiary.
For further information contact:
Sarissa Resources Inc.
Telephone: +1-702-550-2347
Email: IR.SarissaResources@gmail.com
Forward-Looking Statements Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses or net earnings; projections of growth; and assumptions relating to the foregoing. Such forward-looking statements are generally qualified by terms such as plans, anticipates, expects, believes or similar words of like kind. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or qualified. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking information. These factors are discussed in greater detail in the Company's business plan and filings with the OTC Markets.
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SOURCE Sarissa Resources Inc.
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