Grounded People Announces Debt Settlement

Executive Summary

• Grounded People Apparel Inc. entered into settlement agreements to extinguish $450,000 of indebtedness by issuing 4,500,000 common shares at a deemed price of $0.10 per share.
• The settlements are with arm‑length creditors who acquired the debt from a corporate services provider; closing is expected on or before March 9, 2026 pending CSE approval.
• No material change report was filed prior to settlement because terms were finalized shortly before closing.

Key Details

• Settlement Structure: Issue of 4,500,000 common shares at $0.10 per share (aggregate consideration $450,000) to fully settle outstanding debt.
• Creditor Profile: Arm’s‑length parties that purchased the original corporate secretarial and back‑office support debt.
• Closing Timeline: Expected on or before March 9, 2026, subject to Canadian Securities Exchange approval.
• Regulatory Note: Company did not file a material change report >21 days before closing because settlement terms were only finalized shortly prior to the anticipated close.
• Strategic Context: Settlement is part of a broader strategic review aimed at preserving shareholder value and pursuing opportunities in emerging sectors.

Notable Quotes

“Maximilian Justus, Chief Executive Officer” – No direct quote provided; signature indicates CEO endorsement of the settlement.