Cybeats enters $1.2-million debt settlement with Scryb

Executive Summary

• Cybeats Technologies Corp. and Scryb Inc. have entered into a debt settlement agreement to resolve a secured debenture owed by Cybeats to Scryb.
• The settlement involves the issuance of 10 million common shares of Cybeats to Scryb, valued at a deemed price of 12 cents per share, totaling $1.2 million.
• The transaction is classified as a related party transaction under Multilateral Instrument 61-101, relying on specific exemptions from valuation and minority shareholder approval requirements.

Key Details

• Transaction Type: Debt settlement via equity issuance.
• Debenture Amount: $1.2 million secured debenture owed by Cybeats to Scryb.
• Consideration: 10,000,000 common shares of Cybeats Technologies Corp.
• Deemed Price: $0.12 per common share.
• Hold Period: The issued shares are subject to a four-month-and-one-day hold.
• Regulatory Status: Subject to acceptance for filing by the Canadian Securities Exchange (CSE).
• Related Party Status: Scryb is a control person of Cybeats, making this a related party transaction under MI 61-101.
• Exemptions Relied Upon: Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the shares nor the debt settlement exceeds 25% of the companies' respective market capitalizations.
• Strategic Intent: Cybeats intends to use the settlement to improve its financial position and support planned future growth.
• Control Impact: No new control person of Cybeats will be created pursuant to this settlement.