HIRU CORPORATION
20 Bay Street 11th Floor, Toronto Ontario, Canada, M5J 2N8
CORPORATE UPDATE
Toronto Canada Aug 16, 2024, OTC: HIRU. www.hirumining.com Today, the company filed a Reg D with the SEC. This is a simple Form D that entitles new HIRU officers, directors, board members, and new shareholders to purchase and own Hiru stock. 100% of the money raised through the sale of the company stock goes directly to the company. Approximately 1,194.574,606 shares were spoken for by 1 new shareholder alone. The shares were acquired in a private off-the-market transaction directly from the Company at a significant premium price compared to the Company’s current valuation.
This one investment by 1 shareholder (stakeholder) of the company will max out our current HIRU authorized share structure of 3,888,888,888. An upcoming SEC filing in the next few days will reveal the identity of the more than 10% shareholder/stakeholder (approx. 30%). These shares are restricted for 12 months from the date of issuance and are non-tradable. Once they qualify for free trading, they will be further subject to Rule 144 and affiliate trading rules. The company is also looking to reward other key staff with stock options and its service providers in the mining industry. The company will request a share reserve equal to 30% of its current authorized value over the next 1-to-5-year period. (Approx 1,25 billion shares)
The company is currently exploring different options for the stock option plan by creating a new class B common share for 1.25 billion to be quoted and traded in a different market, or alternatively increasing the existing class A common shares for the employee’s stock options.
IMPORTANT: No new or additional shares HIRU will be issued for the Australia mining project valued at $150M to $225M USD. Currently, we are developing the corporate website which will include all the FAQ audio video and still pictures including snippets of mining reports and other relevant data. We are hoping to finalize the website in the early or mid-part of next week. The website will answer a lot of FAQ questions and avoid any confusion that our followers may have. In concert with the completion of the website, we intend to release an SEC filing and formal News announcement of the event.
HIRU management sees stock options as a popular way to reward senior managers and other key employees to align their interests with those of the company and other shareholders. Stock options give employees the right to buy a certain number of shares in the company at a fixed price, known as the grant price. That is usually the market price at the time the options are granted. If the share price rises, employees who have been granted stock will be able to exercise (purchase) the stock at the lower grant price and then sell it at the higher current market price.
Treating our key mining staff is paramount to HIRU management.
We have finalized our new office space:
20 Bay Street 11th Floor Toronto Ontario Canada M5J 2N8
WATER EQUIPMENT FINANCE OVERHANG
We are mindful that our shareholders view old, or ex-water-packing business, and the loan equipment is a drag on our company. Many of our shareholders have expressed concerns over the conversion mill rate of the water equipment financing arrangement. The conversion rate expressed in the document acts as a backstop to allow the financier to have the market maker monetize on the instrument. This is a clever way for the financier to be in bed himself in the estate of the company so that in the other likely event the company would ever face bankruptcy their loan becomes part of the estate and is protected. We are using this opportunity to remind the followers of our company that although this water equipment is financed the title and rights of ownership rest with HIRU. All estimates that we have seen value the equipment at about $2,000,000. The existing note or debt on the equipment is about $1,400,000. The company does have equity in the equipment. As we as a company are no longer in the water business (nor has the new management and the new preferred shareholder ever been) We continue to market and attempt to sell this equipment to settle the existing debt and realize any surplus in equity. The reason we are highlighting this point is that many of our shareholders are of the opinion that we have borrowed $1,400,000 and spent it with nothing to show for it. This is simply not the case. No matter how much we may dislike the previous management there in fact is this acid that belongs to HIRU with a good possibility of some positive equity. Again, we continue to market this equipment for sale and we have had several interesting prospects look at the acid and are in various stages of their due diligence.
Be that as it may, we are mindful of our shareholders’ concerns, and we have reached out to the finance company of the equipment to see if they would be interested in selling their position to a new creditor. As so long as they get repaid, we are assured that they are more than willing to be accommodating to our requests. One of our sources who is very friendly and close to the company is an investor and has expressed interest in purchasing the note outright from the existing financier.
We are pleased to report that the sale is very close to finalizing Upon conclusion of the sale (we anticipate very soon), all previous management financiers and others will no longer be associated with the company.
E-COMMERCE DIVISION SALE
As per our previous tweet, we are in the final stages of liquidating our e-commerce division. Although the e-commerce company has been very profitable and a contributor to the organization, their line of business does not fit within our scope of focus, our focus being the mining sector.
We expect the e-commerce division to be sold and finalized within the next 30 to 45 days.
We continue to explore the feasibility of the Liberia mine project. There are a lot of positives and a lot of upsides to this project. No decision has been made yet, and the management continues with their due diligence and review of the Liberia operations.
We anticipate that our OTC markets access will be restored within the next several days when these types of non-news-worthy updates will be posted as supplemental information or research reports on the OTC markets platform.
More details will follow on a timely basis with both newsworthy events and general corporate updates.
HIRU MANAGEMENT
