Home / Knowledge / News / Textiles / Garmatex signs binding agreement with Oaxaca Resources
Garmatex signs binding agreement with Oaxaca Resources
27
Apr '16
Canada's Garmatex Technologies, Inc. a revolutionary and disruptive fabric technology company has signed a binding and definitive arrangement agreement (the “Arrangement Agreement”) with Oaxaca Resources Corp., a mining company listed and posted for trading on the OTC Pink operated by the OTC Markets Group Inc.

Pending satisfaction of the closing conditions and the court and security holder approvals, Garmatex will become a wholly owned subsidiary of Oaxaca and the security holders of Garmatex will become security holders of Oaxaca, Garmatex said in a press release.

This transaction is commonly referred to as a reverse take-over (RTO) and effectively, upon closing, Garmatex shareholders will hold the majority of the post-closing outstanding shares of Oaxaca, not including the shares to be issued by Oaxaca as part of the concurrent Oaxaca financing. Upon closing of the Arrangement Agreement, Garmatex shareholders will receive one share in Oaxaca for each post-share consolidation Garmatex share (share consolidation will be on a one new share for five old shares basis).

The shares of Oaxaca received by the Garmatex shareholders will be “restricted securities” and will be subject to a 12-month hold period from the date that Oaxaca files “Form 10 information” with the SEC and Oaxaca is compliant with its reporting obligations with the SEC. The purposes of the Garmatex share consolidation are to assist with increasing the initial trading price of the stock and increasing the liquidity of Oaxaca's stock.

Pending certain approvals, it is expected that Oaxaca will change its name to “Garmatex Technologies, Inc.” or such other company name as Garmatex may determine prior to the closing of the Arrangement Agreement, as well as change its stock symbol to more closely represent the new name going forward.

Garmatex anticipates completing the RTO within the next 3 to 6 months.

Darren Berezowski, President and CEO of Garmatex said, “With the announcement of a binding agreement with Oaxaca, we are very pleased to reach an objective of being a public company with the advantages related to such as well as providing our shareholders with liquidity. We believe with the completion of the RTO will now better position us and make us more attractive for raising capital for our business over the course of the next 24 months as we work diligently to significantly surpass a cash flow breakeven point.”

Garmatex will continue in the coming weeks and months to update its shareholders with information about the RTO, progress with the concurrent Oaxaca financing, and updates with respect to Garamtex's business plan going forward. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Two slabs of GST will affect Bengaluru garment units: SIGA

Apparel/Garments | On 23rd Jan 2018

Two slabs of GST will affect Bengaluru garment units: SIGA

The South India Garment Association (SIGA) has voiced its concern...

US FTC updates textile rules to drop obsolete requirement

Textiles | On 23rd Jan 2018

US FTC updates textile rules to drop obsolete requirement

The US Federal Trade Commission has eliminated an obsolete provision...

Indian textile industry at inflection point: Report

Textiles | On 23rd Jan 2018

Indian textile industry at inflection point: Report

The textile and apparel sector of India is at an inflection point...

Interviews View All

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search