Pegasus Mercantile Inc. Announces Debt Settlement Update

Executive Summary

• Pegasus Mercantile Inc. updates its previously announced debt settlement, agreeing to settle CA$163,430 of outstanding indebtedness by issuing 3,268,600 restricted common shares at a deemed price of $0.05 per share.
• The total debt settlement amount, after this update, will be CA$260,400 and is subject to CSE approval.
• The settlement includes CA$138,400 owed to the company’s directors and CEO for fees/consulting, qualifying the transaction as a related‑party deal under MI 61‑101; the company will rely on exemption thresholds for valuation and minority‑shareholder approval.

Key Details

• Outstanding Debt Settled: CA$163,430 (exchange for 3,268,600 restricted common shares).
• Deemed Share Price: $0.05 per share, per CSE policies.
• Holding Period: Shares subject to a four‑month + one‑day lock‑up from issuance date.
• Total Debt Settlement Post‑Update: CA$260,400 (includes prior commitments).
• Related‑Party Component: CA$138,400 owed to directors and CEO for fees/consulting; approved by board.
• Regulatory Framework: Transaction qualifies as a related‑party transaction under Multilateral Instrument 61‑101; company will rely on exemption because fair market value does not exceed 25 % of market capitalization.
• CSE Approval Required: Settlement is pending approval from the Canadian Securities Exchange.

Notable Quotes

(No direct quotes were provided in the release.)