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Mobilum arranges $721,799 shares for debt deal
2023-12-18 17:43 ET - News Release
Mr. John Henderson reports
MOBILUM TECHNOLOGIES ANNOUNCES SHARES FOR DEBT TRANSACTION
Mobilum Technologies Inc. has entered into debt settlement agreements with Blockchain Lab S.A. and TTP Ltd. (collectively, the creditors), pursuant to which the company has agreed to settle indebtedness owing to the creditors in an amount equivalent to $721,799.65 based upon prevailing exchange rates. Pursuant to the agreed upon terms, the indebtedness will be settled through the issuance of 6,808,000 common shares of the company to Blockchain Lab S.A. and 65,371,965 common shares to TTP Ltd., all at a deemed price of one cent per common share.
All securities issued in settlement of the Indebtedness will be subject to a statutory four-month-and-one-day hold period, and no commissions or finders' fees are owing in connection with the settlement. Completion of the settlement remains subject to the approval of the Canadian Securities Exchange and the shareholders of the company.
Wojciech Kaszycki, a director of the company, is a director of TTP and will have investment control and direction over any securities of the company received by TTP in settlement of the indebtedness. Mr. Kaszycki is a member of the supervisory board of Blockchain Lab but does not have control and direction over securities of the company it will receive. Mr. Kaszycki does not have ownership of any securities of TTP or Blockchain Lab, and as a result the settlement of the indebtedness does not constitute a related party transaction for the purposes of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions.
Mr. Kaszycki currently holds 24,860,449 common shares of the company. Following completion of the settlement of the indebtedness, Mr. Kaszycki will also have investment control and direction over a further 65,371,965 common shares of the company held by TTP. Together, Mr. Kaszycki will have control and direction over 90,232,414 common shares of the company, which will represent approximately 38.1 per cent of the outstanding common share capital of the company.
The Canadian Securities Exchange has determined the settlement will materially affect control of the company. As a result, the settlement is subject to the approval of the shareholders of the company. The company intends to seek shareholder approval for the settlement at its annual general and special meeting of shareholders to be held on Jan. 23, 2024. If shareholder approval is not received at the meeting, the company will not proceed with the settlement of the indebtedness at this time.
Further information concerning the annual general and special meeting of shareholders will be made available in a management information circular to be mailed to shareholders of record. A copy of the circular will also be available under the profile for the company on SEDAR+.