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iCrowdNewswire Aug 28, 2020 6:15 AM ET

Canadian Spirit Resources Inc. Announces Second Quarter 2020 Financial Results and Grant of Stock Option


Canadian Spirit Resources Inc. Announces Second Quarter 2020 Financial Results and Grant of Stock Option

iCrowd Newswire - Aug 28, 2020

Canadian Spirit Resources Inc. announces the release of its interim financial results and Management Discussion and Analysis (“MD&A”), for the six month period ended June 30, 2020. In addition, CSRI announces that it has granted incentive stock options to acquire 1,000,000 common shares of the Corporation for a price of $0.05 per share for a period of five years in accordance with the terms and conditions of the Corporation’s Stock Option Plan.

Second Quarter 2020
This news release summarizes information contained in the unaudited interim condensed financial statements and MD&A for the three and six months ended June 30, 2020, and should not be considered a substitute for reading these full disclosure documents which are available on SEDAR at www.sedar.com or the Corporation’s website at www.csri.ca.

The following summarizes certain selected financial data for the three and six months ended June 30, 2020:

(all amounts are presented in Canadian dollars, unless otherwise indicated)

    Three months ended

  June 30,

  Six months ended

  June 30,

    2020     2019     2020     2019  
         
Natural gas sales $                       –   $                       –   $                       –   $                       –  
Operating costs              (117,126 )                (91,190 )              (139,205 )              (141,085 )
         
Operating netback $          (117,126 ) $            (91,190 ) $          (139,205 ) $          (141,085 )
Other income and gains                         61   $              10,000                    23,159                    72,916  
Other Expenses              (290,437 )              (511,516 )              (655,164 )              (852,196 )
Settlement of claims              (514,522 )                           –                (514,522 )                           –  
         
Net comprehensive loss for the period $          (922,024 ) $          (592,706 ) $       (1,285,732 ) $          (920,365 )

The Corporation’s loss and comprehensive loss for the six months ended June 30, 2020 was $1,285,762 (June 30, 2019 – $920,365).  When compared to the prior period the $365,367 increased loss was due mainly to the accrual of $514,522 in settlement of claims which the Corporation expensed in the period. The Corporation terminated the employment of the Corporation’s executive officers in April 2020 and is negotiating settlements of the $514,552 commitment. The Corporation may or may not be successful in negotiating a lessor amount and as such accrued the $514,522 in the Statements of Loss and Comprehensive Loss during the period ended June 30, 2020.

     
  As of June 30,   As of December 31,  
   2020    2019  
     
Working Capital:    
    Current assets $ 954,281   $ 703,063  
    Current liabilities (including debt of $606,739) $ (1,348,323 ) $ (114,738 )
    Working capital $ (394,042 ) $ 588,325  
Total assets $ 38,566,700   $ 38,595,074  
Total debt $ 606,739   $  
Shareholders’ equity $ 35,097,455   $ 36,377,845  
Number of common shares outstanding   196,177,583     196,177,583  

STOCK OPTION GRANT

The Corporation granted the Chief Executive Officer incentive stock options to purchase a total of up to 1,000,000 common shares of the Corporation as incentive compensation. The stock options vest as to one-quarter immediately, with one-quarter vesting on each of the dates six months, 12 months, and 18 months subsequent to the effective date of the grant. All the stock options have a term of five years and may be exercised at a price of $0.05 per share. The grant of options will result in a total of 1,850,000 stock options outstanding at a weighted average exercise price of $0.08 per stock option.

ABOUT CSRI

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. For further information please visit the Corporation’s website at www.csri.ca. 

For further information, please contact:
Canadian Spirit Resources Inc.
Telephone (403) 618-2113
Louisa DeCarlo
louisa@danrichresources.com

Contact Information:

Canadian Spirit Resources Inc.
Telephone (403) 618-2113
Louisa DeCarlo
louisa@danrichresources.com








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