Genesis AI to settle $200,000 debt with 1.48 M shares

Executive Summary

• Genesis AI Corp. approved a settlement of $200,000 debt by issuing 1,481,481 common shares at a deemed price of $0.135 per share.
• An additional 397,221 settlement shares will be issued to former board members, constituting a related‑party transaction under MI 61‑101.
• The issuance relies on exemptions from valuation and minority‑shareholder approval requirements; the shares will carry a four‑month‑and‑one‑day hold period pending CSE acceptance.

Key Details

• Debt Amount: $200,000 of indebtedness to be settled.
• Share Issuance – Creditor: 1,481,481 common shares at a deemed price of $0.135 per share (aggregate value ≈ $200,000).
• Share Issuance – Former Board Members: 397,221 settlement shares issued as part of the same transaction.
• Transaction Type: Shares‑for‑debt settlement; classified as a related‑party transaction under Multilateral Instrument 61‑101.
• Regulatory Exemptions: Company will rely on MI 61‑101 exemptions because neither the fair market value of the shares nor the debt exceeds 25 % of Genesis AI’s market capitalization.
• Holding Period: All settlement shares subject to a four‑month‑and‑one‑day lock‑up.
• Approval Process: Settlement is pending acceptance by the Canadian Securities Exchange (CSE).

Notable Quotes

(No direct quotes were provided in the release.)