CULT Food Science Corp. ("CULT" or the "Company") (CSE: CULT) (OTC: CULTF) (FRA: LN0), a pioneer in the investment, development, and commercialization of cellular agriculture technologies and products, has announced that it has entered into debt settlement agreements (the "Settlement Agreements") to settle outstanding cash payments owed to creditors (the "Creditors") totaling $140,940 (the "Debt Settlement").
Pursuant to the Settlement Agreements, the Company has agreed to issue an aggregate of 2,250,000 common shares ("Shares") at a deemed price of $0.03997 per Share, based on a 20-day VWAP and 1,020,000 Shares at a deemed price of $0.05 per Share. The Debt Settlement includes a director of the Company as to 160,000 Shares for consulting services.
The board of directors of the Company determined that it is in the best interests of the Company to settle the outstanding debts by the issuance of the Shares in order to preserve the Company's cash for working capital.
The Company will be relying on section 2.24 (the "Exemption") of NI 45-106 Prospectus Exemptions, as to 2,250,000 Shares issued too certain Creditors. Securities issued under the Exemption are not subject to a hold period and are free trading.
The Company also announces the issuance of 1,360,000 Restricted Share Units ("RSUs") of the Company to its directors and officers pursuant to its RSU Plan adopted by the shareholders on June 15, 2023. The RSUs will vest immediately and are subject to a four month and one day hold period.
Source : Newswire.ca