MegaWatt Announces Shares for Debt Settlement

• On 2026‑04‑08 MegaWatt announced it will settle $567,400 of consulting, legal and administrative debt by issuing 3,067,000 common shares at a deemed price of $0.185 per share to the creditors.
• The transaction is a related‑party deal (includes $99,700 owed to directors/officers) and is exempt from formal valuation under MI 61‑101.
• All issued shares are subject to a statutory lock‑up of four months plus one day pending CSE clearance.
• No cash proceeds are generated; the issuance merely swaps debt for equity.

Aspect	Assessment
Dilution	Immediate dilution of existing shareholders (~ 3 M shares on ~ 3.1 M post‑consolidation base = ~ 10% increase in share count).
Balance‑sheet effect	Removes a modest $0.57 M liability; net impact on equity is neutral because the shares are issued at fair market value ($0.185) which is close to current trading levels.
Cash flow	No cash inflow – does not improve liquidity beyond debt removal.
Strategic significance	Settlement of a small, non‑core liability; no change to project pipeline or capital‑raising plans.
Regulatory risk	Related‑party exemption limits shareholder approval risk; lock‑up may temporarily suppress trading volume but is standard.
Overall materiality	The news is expected given the company’s thin cash position and prior hints of needing to address small debts. It does not materially alter valuation or project outlook, but it adds dilution pressure. Hence classified as Routine – Negative.

MegaWatt focuses on exploration of lithium and other battery metals in North America. The most publicized asset is the Tyr project in New South Wales, Australia, which was sold in February 2026 for AUD 150k, effectively exiting that jurisdiction. No flagship lithium project remains disclosed; the company appears to be in a cash‑preservation phase.