In August 2018, Ressources et Énergie Squatex Inc. made a strategic move by announcing an agreement to settle its debts with 9129-2862 Québec Inc., a company owned by Jean-Claude Caron, Squatex’s president. This transaction involved the issuance of 18,008,780 common shares at a price of $0.10 each, covering a total debt of $1,800,878.09. The primary goal of this share issuance was to improve Squatex’s financial position by eliminating a significant portion of its accumulated debts.

This share issuance is particularly notable because it involved a related party, Jean-Claude Caron. Under Regulation 61-101 on minority shareholder protection measures, the operation was exempt from the requirement for an official valuation and shareholder approval due to the fair market value of the shares issued and their limited impact on Squatex’s market capitalization (less than 25%).

The shares issued will be subject to a four-month and one-day holding period in accordance with current regulations, aimed at stabilizing the value of the shares after issuance. Following this transaction, the total number of Squatex shares outstanding will reach 123,850,656, with Jean-Claude Caron, through 9129-2862 Québec Inc., now holding 64.45% of the shares outstanding.

In conclusion, this share issuance marks a crucial step for Squatex in its debt reduction strategy and financial cleanup. By eliminating a significant portion of its debts, Squatex strengthens its financial position, preparing for future growth and expansion opportunities.

Squatex’s Position on the Québec Oil and Gas Association (APGQ)

In November 2018, Squatex clarified its position regarding the legal actions taken by the Québec Oil and Gas Association (APGQ) against the Government of Quebec concerning hydrocarbon regulations. Squatex stated that it was not consulted on this initiative and does not support this action.

Squatex emphasized the importance of closely collaborating with government authorities to develop sustainable and responsible projects, taking into account the needs of all stakeholders.

In 2019, Squatex and its partner Petrolympic Inc. decided to sue the Government of Quebec to recover the annual fees collected since 2011 related to hydrocarbon exploration licenses. The collection of these fees despite the legal suspension constitutes an administrative injustice.

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