FEC Resources Settles PXP Loan by Issuing Shares

Rhea-AI Summary

FEC Resources (OTC:FECOF) has announced the conversion of its outstanding debt to PXP Energy Corporation into equity. The total debt of $1,157,760.78, consisting of a $1,011,155.88 loan plus $146,604.90 in accrued interest, will be settled through the issuance of 131,563,725 common shares at $0.0088 per share.

This debt-to-equity conversion agreement with PXP Energy Corporation represents a significant financial restructuring for FEC Resources, effectively eliminating a substantial portion of the company's debt obligations.

Positive

• Elimination of $1.16M in debt obligations through equity conversion
• Improved balance sheet through debt reduction
• No cash outlay required for debt settlement

Negative

• Significant shareholder dilution through issuance of 131.6M new shares
• Share price set at a low $0.0088 per share for the conversion

Vancouver, British Columbia--(Newsfile Corp. - July 31, 2025) - FEC RESOURCES INC. (OTC Pink: FECOF) ("FEC" or the "Company") is pleased to report that PXP Energy Corporation ("PXP") agreed to convert its outstanding loan of $1,011,155.88 plus accrued interest to July 31, 2025 of $146,604.90 into shares of FEC at $0.0088 per FEC share. 131,563,725 common shares of FEC were issued to settle a total of $1,157,760.78 in debt.

On behalf of the Board of,

FEC Resources Inc.

Daniel Carlos
Director and Chief Executive Officer

E-mail: info@FECResources.com     
Website: http://www.FECResources.com 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/260826

FAQ

How much debt did FEC Resources (FECOF) convert to equity in July 2025?

FEC Resources converted a total debt of $1,157,760.78, which included a $1,011,155.88 loan and $146,604.90 in accrued interest.

What is the conversion price for FEC Resources' debt-to-equity settlement?

The debt was converted at $0.0088 per share of FEC Resources stock.

How many new shares will FEC Resources (FECOF) issue to settle the PXP loan?

FEC Resources will issue 131,563,725 common shares to settle the debt with PXP Energy Corporation.

Who is the lender in FEC Resources' debt conversion agreement?

PXP Energy Corporation is the lender who agreed to convert their outstanding loan into FEC Resources shares.