Reflex to issue 2.8 million units for debt of $420,000

Executive Summary

• Reflex Advanced Materials Corp. has closed debt settlement transactions totaling $420,000 with an officer and consultants of the company.
• The debt was settled through the issuance of 2.8 million units, comprising common shares and warrants, effectively converting liabilities into equity.
• One agreement constitutes a related-party transaction involving an officer-controlled entity, for which the company relied on specific exemptions from valuation and minority shareholder approval requirements under Multilateral Instrument 61-101.

Key Details

• Transaction Value: Aggregate debt settled in the amount of $420,000.
• Consideration: Issuance of 2.8 million units.
• Deemed Price: 15 cents per unit.
• Unit Composition: Each unit consists of one common share and one share purchase warrant.
• Warrant Terms:
  • Each warrant is convertible into one common share.
  • Exercise Price: 20 cents per share.
  • Duration: Two years.
• Hold Period: Securities are subject to a hold period of four months and one day pursuant to Canadian Securities Exchange policies.
• Related-Party Transaction Details:
  • One agreement involves a company owned and controlled by an officer of Reflex Advanced Materials.
  • The company relied on exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101.
  • Justification: The fair market value of the transaction with the officer did not exceed 25% of the company's market capitalization.
  • Disclosure: No material change report was filed 21 days prior to closing, which the company deemed reasonable in the circumstances.

Notable Quotes

• None provided in the text.