Prismo Metals Announces Debt Settlement

Rhea-AI Summary

Prismo Metals Inc. (CSE:PRIZ)(OTCQB:MOMF) has announced a debt settlement agreement with a creditor. The company will issue 180,000 common shares at a deemed price of $0.17 per share to settle an outstanding debt of $30,600. The Settlement Shares will be subject to a four-month statutory hold period under Canadian securities laws, along with additional restrictions for jurisdictions outside Canada. These securities are not registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States without registration or an applicable exemption.

Positive

• Reduction of outstanding debt by $30,600
• Preservation of cash through share issuance instead of cash payment

Negative

• Dilution of existing shareholders' ownership due to issuance of new shares
• Potential downward pressure on stock price due to increased share supply

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / August 13, 2024 / Prismo Metals Inc. ("Prismo" or the "Company") (CSE:PRIZ)(OTCQB:MOMF) announces that it has entered into a debt settlement agreement with a creditor of the Company (the "Creditor") pursuant to which the Company has agreed to issue to the Creditor, and the Creditor has agreed to accept 180,000 common shares of the Company (the "Settlement Shares") at a deemed issue price of $0.17 per share in full and final settlement of accrued and outstanding indebtedness in the amount of $30,600.

The Settlement Shares will be subject to a statutory hold period of four months from the date of issuance under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

None of the foregoing securities have been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Prismo Metals Inc.
Prismo (CSE:PRIZ) is mining exploration company focused on two precious metal projects in Mexico (Palos Verdes and Los Pavitos) and a copper project in Arizona (Hot Breccia).

Please follow @PrismoMetals on Twitter, Facebook, LinkedIn, Instagram, and YouTube

Prismo Metals Inc.
1100 - 1111 Melville St., Vancouver, British Columbia V6E 3V6

Contact:
Alain Lambert, Chief Executive Officer alambert@cpvcgroup.ca
Steve Robertson, President steve.robertson@prismometals.com
Jason Frame, Manager of Communications jason.frame@prismometals.com

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Prismo Metals Inc.

View the original press release on accesswire.com

FAQ

What is the value of the debt being settled by Prismo Metals (OTCQB:MOMF)?

Prismo Metals is settling a debt of $30,600 through this agreement.

How many shares is Prismo Metals (OTCQB:MOMF) issuing for the debt settlement?

Prismo Metals is issuing 180,000 common shares to settle the debt.

What is the deemed price per share for Prismo Metals' (OTCQB:MOMF) debt settlement?

The deemed price per share for the debt settlement is $0.17.

How long is the statutory hold period for the Settlement Shares issued by Prismo Metals (OTCQB:MOMF)?

The Settlement Shares are subject to a statutory hold period of four months from the date of issuance.