Geekco Technologies to settle $223,025 debt with shares

Executive Summary

• Geekco Technologies Corp. is issuing 4,460,500 Class A shares to settle $223,025 of unpaid royalties owed to Henri Harland (via Gestion Harland Inc.) at $0.05 per share.
• The company also closed a separate shares‑for‑debt deal with insider Mario Beaulieu, converting $20,112.52 of unpaid compensation into 402,250 common shares at the same price.
• Upon completion, Henri Harland’s indirect ownership will rise to ~18.5 % (undiluted) or ~22.1 % (partly diluted), representing a material related‑party financing that strengthens Geekco’s balance sheet while preserving cash.

Key Details

• Transaction Structure: Shares‑for‑debt; each share priced at $0.05.
• Henri Harland Deal:
• Gross proceeds: $223,025.
• Shares issued: 4,460,500 Class A shares.
• Resale restriction: four months and one day from closing.
• Post‑transaction indirect ownership: ≈18.5 % (undiluted) / ≈22.1 % (partly diluted).
• Mario Beaulieu Deal:
• Gross proceeds: $20,112.52.
• Shares issued: 402,250 common shares.
• Resale restriction: four months and one day from closing.
• Regulatory Requirements: Both transactions subject to TSX Venture Exchange approval and applicable securities law approvals.
• Related‑Party Status: Transaction qualifies for exemption under Multilateral Instrument 61‑101 (consideration ≤ 25 % of market cap). No material change report filed prior to closing due to pending confirmation of insider participation.
• Board Rationale: Board unanimously determined the terms are fair, equitable, and represent the best strategic financing option available, preserving cash and strengthening the balance sheet.

Notable Quotes

(No direct quotes were provided in the release.)