Geekco to issue 402,250 shares to CEO as compensation

Executive Summary

• Geekco Technologies Corp. has announced a proposed Shares for Debt (SFD) transaction with its Director and CEO, Mario Beaulieu, to settle unpaid net compensation of $20,112.52.
• The transaction involves the issuance of 402,250 Class A shares at $0.05 per share, intended to preserve cash and strengthen the company's balance sheet.
• The transaction is exempt from formal valuation and minority shareholder approval requirements under MI 61-101 due to the company's TSX Venture Exchange listing and the low value relative to market capitalization.

Key Details

• Transaction Structure: Shares for Debt (SFD) to settle unpaid net compensation for employment as an officer.
• Counterparty: Mario Beaulieu (Director and Chief Executive Officer).
• Debt Amount Settled: $20,112.52.
• Shares Issued: 402,250 Class A shares.
• Price Per Share: $0.05.
• Gross Proceeds: $20,112.52.
• Use of Proceeds: Preservation of cash and strengthening of the balance sheet.
• Resale Restriction: Four months and one day from the closing date.
• Post-Transaction Ownership:
  • Undiluted basis: Increases from nil to 0.4%.
  • Partly diluted basis: Increases by approximately 0.3% to reach approximately 2.1%.
• Regulatory Status: Subject to approval of the TSX Venture Exchange and other applicable regulatory approvals.
• Exemptions: Exempt from MI 61-101 formal valuation and minority shareholder approval requirements because securities are listed on TSX-V and the consideration does not exceed 25% of market capitalization.
• Board Approval: Unanimously approved by board members (excluding Mr. Beaulieu), who determined the terms were fair, equitable, and the best strategic financing option.
• Disclosure: No material change report filed more than 21 days prior as details were not confirmed at that time.

Notable Quotes

• "Geekco intends to preserve cash and strengthen Geekco's balance sheet."