Oracle Commodity Announces Debt Settlement of $10,000 in Shares

Rhea-AI Summary

Oracle Commodity Holding Corp. (TSXV: ORCL) (OTCQB: ORLCF) has announced a debt settlement agreement with a company director. The agreement involves settling $10,000 of debt owed for management fees through the issuance of 105,263 common shares at a deemed price of $0.095 per share.

This insider debt settlement is exempt from valuation and minority shareholder approval requirements under Multilateral Instrument 61-101, as the fair market value of the securities to be issued does not exceed 25% of the company's market capitalization. The issued shares will be subject to a four-month statutory hold period.

Positive

• Reduction of $10,000 in debt obligations
• Preservation of cash through share-based debt settlement

Negative

• Potential dilution of existing shareholders' ownership
• Issuance of shares at a relatively low price of $0.095 per share

News Market Reaction – ORLCF

-3.51%

-3.51% Session move

In the trading session that priced this news, ORLCF declined 3.51%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Vancouver, British Columbia--(Newsfile Corp. - July 19, 2024) - Oracle Commodity Holding Corp. (TSXV: ORCL) (OTCQB: ORLCF) ("Oracle" or the "Company") announces that it has entered into an agreement to settle $10,000 of debt owed to a director of the Company for management fees in consideration for the issuance of 105,263 common shares of the Company at a deemed price of $0.095 per share (the "Debt Settlement").

The insider debt settlement of $10,000 and 105,263 common shares are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to insiders does not exceed 25% of its market capitalization. All securities issued pursuant to the Debt Settlement will be subject to a statutory four month hold period.

About Oracle Commodity Holding Corp.

Oracle Commodity Holding Corp. is a mining royalty company spun out from Silver Elephant Mining Corp. (TSX: ELEF) in 2022.

Further information on Oracle Commodity can be found at www.oracleholding.com.

ORACLE COMMODITY HOLDING CORP.

ON BEHALF OF THE BOARD

"Anthony Garson"
CEO

For more information about Oracle Commodity, please contact:
Email: info@oracleholding.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) 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/217117

FAQ

What is the total value of debt being settled by Oracle Commodity Holding Corp (ORLCF)?

Oracle Commodity Holding Corp (ORLCF) is settling $10,000 of debt owed to a director for management fees.

How many shares is Oracle Commodity Holding Corp (ORLCF) issuing for the debt settlement?

Oracle Commodity Holding Corp (ORLCF) is issuing 105,263 common shares for the debt settlement.

What is the deemed price per share for Oracle Commodity Holding Corp's (ORLCF) debt settlement?

The deemed price per share for Oracle Commodity Holding Corp's (ORLCF) debt settlement is $0.095.

Is Oracle Commodity Holding Corp's (ORLCF) debt settlement subject to shareholder approval?

No, the debt settlement is exempt from valuation and minority shareholder approval requirements under Multilateral Instrument 61-101.