debt settlement transaction Makes me quite a bit more comfortable!
September 20, 2018 – HIT Technologies Inc. (the "Company"; TSX.V: HIT) announces that, further to its previous announcement on June 29, 2018, the Company has completed its debt settlement transaction to settle aggregate liabilities of $151,636.75. Pursuant to the debt settlements, the Company has issued an aggregate of 3,032,735 common shares at a price of $0.05 per share, of which 1,000,000 common shares will be issued to a holding company of an insider of the Company, who is a director / officer of the Company. These securities will have a hold period expiring on January 21, 2019.
Furthermore, the Company intends to issue up to $440,000 in secured convertible debentures (the “Debentures”) on a private placement basis. The Debentures will bear interest at the rate of 10% per annum with a two-year term and are convertible into common shares of the Company at $0.05 per share in the first 12 months and at $0.10 per share in the second 12 months. In addition, the Company will be issuing an aggregate of 8,800,000 share purchase warrants exercisable to acquire an additional share of the Company at $0.05 per share for a period of two years.
The Company plans to use the funds from the financing to fund ongoing operations, to meet its continuous disclosure obligations and for general working capital purposes. All securities issued in connection with the above transactions will be subject to a four-month statutory hold period. The financing is subject to the approval of the TSX Venture Exchange.