Cloudbreak Discovery PLC (LSE:CDL, OTC:CDBDF) has successfully concluded agreements with its former directors and management following a comprehensive review conducted by the board after the resignation of Kyler Hardy as chief executive and the appointment of Andrew Male as interim chief executive.
The group resolved an existing liability of £907,710 with former management and their related consulting companies Cronin Capital and Cronin Services in relation to outstanding management charges incurred over the past two years.
Under the terms of the debt agreement, all outstanding amounts owed to Cronin are being purchased and assigned to investors.
Under a share purchase agreement, the Cronin entities will sell 100% of their shares in Cloudbreak.
Cloudbreak intends to dispose of legacy assets with £102 million to Galleon. These assets are:
- 100% of the shares of Kudu Resources and all of its holdings;
- The Foggy Mountain Property in the Toodoggone region of British Columbia
- The Le Blache Royalty Agreement stipulating a 2% net smelter royalty
- 1.7 million shares of Buscando Resources and
- 950,000 shares of Temas Resources (CSE:TMAS, OTCQB:TMASF)
Galleon has agreed that it will transfer these legacy assets to the Cronin entities plus an additional £207,000 in cash and in turn will receive all ordinary shares in Cloudbreak owned by Cronin.
Andrew Male, interim CEO, expressed his contentment with the progress, stating: "We are happy to have agreed to these arrangements and agreements with the Cronin parties and former management and we look forward to updating our shareholders in the near future."