Reklaim Ltd. Strengthens Balance Sheet with 18% Debt Reduction

Rhea-AI Summary

Reklaim (OTCQB: MYIDF) has announced an 18% reduction in overall debt, funded through existing cash flow, demonstrating the company's disciplined financial management. Additionally, Reklaim completed a non-brokered private placement of convertible debenture units totaling $465,400 to accredited investors, which replaces an existing facility rather than creating new debt.

The debentures feature a 12% annual interest rate, payable semi-annually with maturity in 2027. Each debenture unit includes one senior secured convertible debenture and half a warrant. The warrants allow holders to purchase common shares at C$0.14 per share within 24 months, with 2,216,190 warrants issued. Reklaim maintains a forced conversion right if shares trade at a VWAP of $0.20 or higher for ten consecutive trading days.

Positive

• 18% reduction in overall debt using existing cash flow
• Successful refinancing of $465,400 through convertible debentures without creating new debt
• Company maintains early repayment option on debentures

Negative

• 12% annual interest rate on new debentures is relatively high
• Potential dilution risk from convertible debentures and warrants

News Market Reaction

-5.23%

1 alert

-5.23% News Effect

On the day this news was published, MYIDF declined 5.23%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Reduction highlights Reklaim's disciplined financial management  

NEW YORK, Feb. 13, 2025 /PRNewswire/ - Reklaim Ltd. (OTCQB: MYIDF) (TSXV: MYID) ("Reklaim" or the "Company"), the platform that empowers consumers to access, control, and monetize their personal data, announces an 18% reduction in overall debt, fully funded by existing cash flow. This reduction highlights Reklaim's disciplined financial management and commitment to shareholder value.

Separate from the debt reduction, Reklaim has completed a non-brokered private placement of convertible debenture units (the "Debenture Units") totalling $465,400 to accredited investors, replacing an existing outstanding facility.  Each Debenture Unit consists of one senior secured convertible debenture (the "Debenture") and one-half of a warrant. This transaction does not create new debt but refinances and replaces existing debenture holders.

The Debentures accrue interest at a rate of 12.0% per annum, are payable semi-annually, and mature in 2027. The Company reserves the right to repay the Debentures early.

Each warrant entitles the holder to purchase one common share (each a "Share") at an exercise price of C$0.14 per share for 24 months from the date of issue (the "Expiry Time"). Reklaim retains a forced conversion right should the Shares trade at a VWAP of $0.20 or higher on the TSX Venture Exchange (the "TSXV") for ten consecutive trading days. A total of 2,216,190 Warrants were issued under the Offering.

No commissions or fees are payable by the Company in connection with the Offering. The Offering remains subject to final approval by the TSXV, and all securities issued under the Offering are subject to a hold period of four months plus one day, in accordance with applicable securities laws.

Additional Information:

The Company has also agreed to issue 16,380 common shares (the "Settlement Shares") at a price of C$0.11 per share to certain platform users in Canada who participated in Reklaim's beta testing for a new product feature. The total value of this settlement is C$1,800.

About Reklaim Ltd.

Reklaim provides compliant, consumer-permissioned data to Fortune 500 brands, platforms, and data companies, empowering individuals to take control of their personal information. By visiting Reklaim, users can confirm their identity and uncover data collected and sold without their explicit consent. Through a Reklaim account, consumers can choose to monetize their data or safeguard it using Reklaim's suite of privacy tools. For more information, visit Reklaim's investor page.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements:

This news release contains forward-looking statements and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will," "may," "should," "anticipate," "expects," and similar expressions.

All statements other than those of historical fact included in this release—including, but not limited to, statements regarding the TSXV's final approval of the Offering, the intended use of proceeds, and the closing of the Debt Settlement—are forward-looking statements involving risks and uncertainties. There can be no assurance that such statements will be accurate, and actual results may differ materially. Investors are cautioned not to place undue reliance on any forward-looking information.

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SOURCE Reklaim Ltd.

FAQ

What is the percentage of debt reduction announced by Reklaim (MYIDF) in February 2024?

Reklaim announced an 18% reduction in overall debt, funded through existing cash flow.

What is the interest rate and maturity of Reklaim's (MYIDF) new convertible debentures?

The convertible debentures have a 12% annual interest rate, payable semi-annually, and mature in 2027.

How many warrants were issued in Reklaim's (MYIDF) February 2024 offering?

A total of 2,216,190 warrants were issued under the offering.

What is the exercise price and duration of Reklaim's (MYIDF) new warrants?

The warrants have an exercise price of C$0.14 per share and are valid for 24 months from the date of issue.

What is the forced conversion trigger price for Reklaim's (MYIDF) new convertible debentures?

Reklaim can force conversion if shares trade at a VWAP of $0.20 or higher for ten consecutive trading days on the TSXV.