Purebread Brands to issue 1.57 million shares for debt

Executive Summary

• Purebread Brands Inc. announced a proposed debt settlement agreement to convert $1,974,588 of outstanding indebtedness into 1,579,670 units at $1.25 per unit, subject to TSX Venture Exchange approval.
• The company also confirmed the completion of a previously announced share-for-debt transaction, issuing 532,322 common shares to settle $484,000 (US) of accrued and outstanding indebtedness.
• Following the completed transaction, the total number of common shares outstanding increased from 27,566,263 to 28,098,585.

Key Details

• Proposed Debt Settlement:
  • Creditor: Arm's-length creditor.
  • Debt Converted: $1,974,588 of outstanding indebtedness.
  • Securities Issued: 1,579,670 units.
  • Price: $1.25 per settlement unit.
  • Unit Composition: Each unit comprises one common share and one-half of one common share purchase warrant.
  • Warrant Terms: Each full warrant is exercisable to acquire one common share at an exercise price of $2.50 per share for a period of three years from issuance.
  • Insider Status: The creditor will become an insider upon closing.
  • Regulatory Approval: Subject to TSX Venture Exchange approval.
  • Hold Period: Four-month hold period from issuance under Canadian securities laws.
• Completed Debt Settlement (Referenced from Jan. 6, 2026 release):
  • Debt Settled: $484,000 (U.S.) / $665,403.20 (Canadian) in accrued and outstanding indebtedness.
  • Shares Issued: 532,322 common shares.
  • Price: $1.25 per settlement share.
  • Pre-Transaction Share Count: 27,566,263 common shares.
  • Post-Transaction Share Count: 28,098,585 common shares.
  • Hold Period: Four-month hold period from issuance under Canadian securities laws.

Notable Quotes

• None provided in the text.