Global Compliance Applications to issue shares for debt

Executive Summary

• Global Compliance Applications Corp. has agreed to settle an aggregate debt of $246,428 owed to its creditors.
• The settlement is being executed through the issuance of 24,642,800 settlement units, valued at a deemed price of $0.01 per unit.
• Each settlement unit comprises one common share and two share purchase warrants, with specific exemption and hold period terms under Canadian securities laws.

Key Details

• Debt Amount: The total aggregate debt being settled is $246,428.
• Securities Issued: The company will issue an aggregate of 24,642,800 settlement units.
• Deemed Price: The settlement units are issued at a deemed price of $0.01 (one cent) per unit.
• Unit Composition: Each settlement unit consists of:
  • One common share in the capital of the company.
  • Two share purchase warrants.
• Warrant Terms:
  • Each warrant entitles the holder to acquire one share at an exercise price of $0.05 (five cents) per warrant share.
  • The warrants are exercisable for a period of 24 months from the closing date of the debt settlement.
• Regulatory Exemption: The issuance is pursuant to the employee, executive officer, director, and consultant exemption set forth in Section 2.24 of National Instrument 45-106, Prospectus Exemptions.
• Hold Periods:
  • The securities are not subject to a hold period under prevailing Canadian securities laws due to the exemption.
  • However, the warrants, underlying common shares, and warrant shares are subject to a statutory hold period of four months and one day following the date of issuance in accordance with applicable Canadian securities laws.