Telescope Announces Debt Settlement Transaction

Executive Summary

• Telescope Innovations Corp. will settle CAD $100,000 of outstanding indebtedness to its CTO/director Jason Hein by issuing a total of 689,654 common shares at a deemed price of CAD $0.29 per share.
• The settlement covers both personal services debt and a portion of a previously secured loan facility (CAD $1.2 M) that bears 6.95% interest and matures June 1 2026.
• All issued shares will be subject to a statutory hold period of four months and one day, and the transaction remains pending CSE and other regulatory approvals.

Key Details

• Debt Settlement Structure: 689,654 common shares to be issued in two tranches of 344,827 shares each – one for services debt to Jason Hein and one for a portion of the secured loan facility.
• Deemed Share Price: CAD $0.29 per share (total consideration of CAD $100,000).
• Related‑Party Transaction: Jason Hein is both CTO and a director; the transaction qualifies as a related‑party transaction under MI 61‑101. The company relies on exemption provisions because the fair market value of the shares does not exceed 25% of Telescope’s market capitalization.
• Loan Facility Background: Original secured loan provided CAD $1,200,000 for operational activities; interest rate 6.95% per annum; maturity date June 1 2026. The settlement reduces the outstanding loan balance by CAD $100,000.
• Regulatory Conditions: Shares will be subject to a statutory hold period of four months and one day from issuance under Canadian securities law. Completion is contingent upon approval by the Canadian Securities Exchange (CSE) and any other required regulatory bodies.
• No Cash Outflow: The settlement is achieved through share issuance; no cash payment is required from Telescope Innovations.

Notable Quotes

“The issuance of shares to settle a modest amount of indebtedness aligns with our capital management strategy and preserves cash for ongoing operational initiatives,” – Henry Dubina, CEO, Telescope Innovations Corp.