Reflex Advanced Announces Securities for Debt Settlement

Executive Summary

• Reflex Advanced Materials entered into debt settlement agreements to extinguish $420,000 of indebtedness by issuing 2,800,000 units (each comprising one common share and one warrant).
• The transaction includes a related‑party component but relies on MI 61‑101 exemptions; CSE approval is pending and the securities will be subject to a four‑month hold period.
• Each warrant is exercisable for one share at $0.20 for two years, providing potential future equity dilution.

Key Details

• Total debt settled: $420,000.
• Units issued: 2.8 million units at a deemed price of $0.15 per unit.
• Unit composition: 1 common share + 1 share purchase warrant.
• Warrant terms: Convertible into one share at $0.20 per share; exercisable for two years.
• Related‑party transaction: One agreement involves an officer‑controlled entity; the company relies on MI 61‑101 exemptions because fair market value ≤ 25 % of market capitalization.
• Regulatory requirements: Subject to approval by the Canadian Securities Exchange (CSE); securities will have a hold period of four months and one day.
• No material change report filed for the related‑party transaction, deemed reasonable under the circumstances.

Notable Quotes

“The settlement provides us with immediate relief from outstanding obligations while aligning our capital structure with long‑term strategic goals.” – DJ Bowen, Interim CEO & Director.