Company: FMST
Filing Date: 2025-06-20
Form Type: 20-F
Source: 0001171843-25-004004
Chunk: 238

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: 20-F
Item: Item 19
Chunk 238
---
2021, the Company received a loan of $40,000from the Canada Emergency Business Account to provide emergency support to businesses due to the impact of COVID-19. The loan is non-interest bearing untilDecember 31, 2023, after which it will incur interest at5% per annum. During the year endedMarch 31, 2024, the Company repaid $30,000and recorded the remaining $10,000as other income in profit and loss as the balance was forgiven.

  17.      SPIN-OUT TRANSACTION  
 ─────────────────────────────────

OnJuly 29, 2024, the Company entered into an Arrangement Agreement, which was amended and restated onNovember 4, 2024, to spin out100% of the shares of Sierra, into Rio Grande, by way of a plan of arrangement (the “ Arrangement”). OnJanuary 31, 2025, Foremost and Rio Grande completed the spin-out transaction. Pursuant to the Arrangement Agreement, Rio Grande and Sierra werenolonger wholly owned subsidiaries of the Company and were deconsolidated as of January 31, 2025.

As a condition to the completion of the Arrangement, Rio Grande issued:

  A $ 677,450 promissory note (the “ Rio Grande Promissory Note”) to a related party, namely Jason Barnard and Christina Barnard, due for payment on or before November 5, 2027. The Rio Grande Pro...  

  ii)      A $ 520,000 promissory note (the “ Foremost Promissory Note”) to a related party, namely Foremost, due for repayment on or before November 5, 2027. The Foremost Promissory Note bears interest o...  

Pursuant to the terms of the Arrangement, Foremost (i) transferred to Rio Grande the right to collect receivables in respect of all amounts outstanding from Sierra to Foremost as at the Effective Date and (ii) assigned and transferred to Rio Grande all of the issued and outstanding Sierra Shares in consideration for Rio Grande issuing25,827,349common shares and9,281,236warrants with a fair value of $2,604,781(includes5,152,557common shares issued to Foremost (received, Note4).

Notwithstanding Foremost’s equity incentive plan (the “ Foremost Incentive Plan”), each stock option of Foremost (the “ Foremost Options”) ent