Telescope Innovations to issue 689,654 shares for debt

Executive Summary

• Telescope Innovations Corp. has entered into agreements to settle $200,000 in total outstanding indebtedness by issuing a combined total of 689,654 common shares.
• The transaction involves two distinct settlements: $100,000 owed to Jason Hein (CTO and Director) for services rendered, and $100,000 owed to a group of lenders under a secured loan facility.
• The shares were issued at a deemed price of 29 cents per share. The transaction is classified as a related party transaction under Multilateral Instrument 61-101, relying on specific exemptions from formal valuation and minority shareholder approval requirements.

Key Details

• Total Shares Issued: 689,654 common shares.
• Debt Settlement 1 (Related Party):
  • Creditor: Jason Hein (Chief Technology Officer and Director).
  • Debt Amount: $100,000 (incurred for services previously provided).
  • Shares Issued: 344,827.
  • Deemed Price: $0.29 per share.
• Debt Settlement 2 (Lender Group):
  • Creditor: Group of lenders under a secured loan facility.
  • Original Facility Details: Aggregate proceeds of $1.2 million; interest rate of 6.95% per annum; maturity date of June 1, 2026.
  • Debt Amount Settled: $100,000.
  • Shares Issued: 344,827.
  • Deemed Price: $0.29 per share.
• Regulatory Status:
  • The transaction constitutes a related party transaction under Multilateral Instrument 61-101.
  • The company relies on exemptions from formal valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(1)(a) of MI 61-101, based on the fair market value of securities not exceeding 25% of the company's market capitalization.
  • Completion is subject to approval by the Canadian Securities Exchange and other required regulatory approvals.
• Share Restrictions: All shares are subject to a statutory hold period of four months and one day from the date of issuance.