Zefiro settles $674,846 debt through share issuance

Executive Summary

• Zefiro Methane Corp. settled an aggregate of $674,846 in outstanding debt by issuing 1,533,741 common shares at a price of $0.44 per share.
• The transaction involves two creditors, including a related party, Catherine Flax, who settled $468,000 (U.S.) of debt.
• The company views this as a strategic move to strengthen its balance sheet and reduce overall debt obligations.

Key Details

• Total Debt Settled: $674,846.
• Shares Issued: 1,533,741 common shares.
• Price Per Share: $0.44.
• Related Party Transaction: Catherine Flax (Director and Officer) settled $468,000 (U.S.) in outstanding debt under a promissory note dated Sept. 1, 2023.
• Post-Transaction Holdings: Ms. Flax holds 8,630,325 common shares following the transaction.
• Regulatory Compliance: The company relied on exemptions from formal valuation and minority approval requirements of Multilateral Instrument 61-101 (MI 61-101) because the fair market value of the portion settled with Ms. Flax did not exceed 25% of the company's market capitalization.
• Board Approval: The transaction was reviewed and approved by the board of directors, with Ms. Flax abstaining from deliberations.
• Hold Period: All common shares issued are subject to a statutory four-month-and-one-day hold period per Cboe Canada Exchange policies and applicable securities laws.
• Material Change Report: No material change report was filed 21 days prior to closing because creditor participation was not settled until shortly before closing.

Notable Quotes

• "The company views these strategic debt settlements as a positive step toward strengthening its balance sheet and continuing to reduce overall debt obligations."