oceansix Future Paths Ltd. Announces Intention to Make Court Filing for Debt Settlement under Israeli Insolvency and Financial Rehabilitation Law, and Publishes its Third Quarter of 2024 Results
Rhea-AI Summary
oceansix Future Paths (TSXV: OSIX, OTCQB: AKMYF) has announced its intention to file for debt settlement with the Tel Aviv District Court under Israeli Insolvency Law. Under the proposed settlement, all existing shares will be cancelled, and debts to non-major shareholders will be repaid. Major shareholders' debts will be converted to equity. The company will continue operations with financing from major shareholders but expects to be delisted from TSXV, OTCQB, and Borse-Frankfurt after settlement completion. This decision follows assessment of the company's cash position, forecasted financials, and inability to raise capital from public markets.
Positive
- Company will continue operations during debt settlement process
- Major shareholders providing ongoing operational financing
- Debt settlement could improve company's financial structure
Negative
- All existing shares will be cancelled
- Company unable to raise capital from public markets
- Planned delisting from all current exchanges (TSXV, OTCQB, Borse-Frankfurt)
- Financial distress leading to insolvency proceedings
- Current shareholders will lose their investment
Tel Aviv, Israel--(Newsfile Corp. - November 28, 2024) - oceansix Future Paths Ltd. (TSXV: OSIX) (OTCQB: AKMYF) (FSE: 5FC0) ("Oceansix" or the "Company"), announces that it has summited a Request to Approve a Debt Settlement (the "Debt Settlement") with the Tel Aviv District Court in Israel, pursuant to the Israeli Insolvency and Financial Rehabilitation Law, 5778-2018. The Debt Settlement, if approved, will provide for the repayment of the Company's debts to its creditors, other than its major shareholders, Sullam Holdings L.R. Ltd., Tedea Technological Development and Automation Ltd., and RAM.ON Finance GmbH (collectively, the "Major Shareholders"). Under the Debt Settlement, all shares of the Company will be cancelled. Debts owed to the Company's Major Shareholders will not be repaid, but will be converted into equity of the Company upon completion of the Debt Settlement. The Company will continue its operations during this process and will receive financing to assist in its ongoing operations from the Major Shareholders. Following the conclusion of the Debt Settlement, it is anticipated that the Company will be delisted from the TSXV (subject to TSXV acceptance), OTCQB and the Borse-Frankfurt Stock Exchange. The Debt Settlement is subject to the approval of the Israeli court and the TSXV.
The decision to seek the Debt Settlement was taken after careful consideration of available alternatives, including the Company's cash position, forecasted revenues and expenses, inability to raise capital from the public markets, and its scheduled debt payments. Following consultation with its legal and financial advisors, the Board of Directors has determined that it was in the best interests of the Company to submit a request for the Debt Settlement. At this time, the Company maintains a board of directors having the minimum of 3 directors, it is in good standing with its transfer agent, and it will provide material updates to the Debt Settlement as they occur.
Because the Major Shareholders are considered insiders of the Company, the Debt Settlement may constitute "related party transactions" within the meaning of Multilateral Instrument 61-101 ("MI 61-101"). However the Debt Settlement is exempt from the formal valuation and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.5(f) and 5.7(d), respectively, because it is subject to a court order to be effected under bankruptcy or insolvency law, and the Debt Settlement, as currently formulated, will not require the court to obtain a valuation or shareholder approval in order to complete the Debt Settlement.
The Company also announces the release of its consolidated financial statements for its third quarter of 2024, which ended September 30, 2024, along with the related Management Discussion and Analysis. These documents will be posted under the Company's profile on SEDAR at www.sedarplus.ca, and on the Company's website at www.oceansix.com.
About oceansix
For further information about oceansix, please contact:
Elad Hameiri, CEO | +34 673 435 571 oceansix future paths Ltd.
Disclaimers
This release may contain forward-looking statements and information which may be identified by formulations using terms such as "expects", "aims", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or "will". Such forward-looking statements are based on our current expectations and certain assumptions, which may be subject to a variety of risks and uncertainties, including but not limited the ability of the Company to obtain court approval for the Debt Settlement. The results actually achieved by oceansix future paths Ltd. may substantially differ from these forward-looking statements. oceansix Future Paths Ltd. assumes no obligation to update these forward-looking statements or to correct them in case of developments which differ from those anticipated.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the TSX Venture Exchange's policies) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/231829
FAQ
What is oceansix Future Paths (AKMYF) debt settlement plan?
Will oceansix Future Paths (AKMYF) continue trading after debt settlement?
What happens to existing shareholders of oceansix Future Paths (AKMYF)?
