Scandium to issue 513,939 shares for debt of $84,800

Executive Summary

• Scandium Canada Ltd. has signed a debt settlement agreement with an arm's-length creditor to resolve $84,800 in debt related to services rendered for the Crater Lake project.
• The company intends to settle this obligation by issuing 513,939 common shares, effectively converting debt to equity to preserve cash and improve its balance sheet.
• The transaction is subject to TSX Venture Exchange approval and includes a mandatory hold period for the issued shares.

Key Details

• Debt Amount: $84,800 owed to an arm's-length creditor for services rendered for the Crater Lake project.
• Settlement Mechanism: Issuance of 513,939 common shares.
• Implied Price: 16.5 cents per share (calculated as $84,800 / 513,939 shares).
• Purpose: To preserve cash for operations, improve the balance sheet, and manage financial resources prudently.
• Regulatory Status: Subject to approval by the TSX Venture Exchange.
• Share Restrictions: The issued shares are subject to a mandatory hold period of four months and one day from the date of issue.
• Insider Participation: No insiders are participating in the transaction.
• Brokerage: No brokerage agreement has been entered into in connection with this debt settlement.

Notable Quotes

• "The company's board of directors believes that settling this debt through the issuance of shares is in the best interest of the company, as it allows it to preserve cash for its operations, improve its balance sheet and support the overall need to manage its financial resources prudently."