Prismo Metals Announces Debt Settlement

Rhea-AI Summary

Prismo Metals announced a debt settlement agreement with certain creditors. The company will issue 100,000 common shares at $0.21 per share and 17,500 common shares at $0.20 per share to settle outstanding debt of $24,500. The Settlement Shares will be subject to a four-month statutory hold period under Canadian securities laws. The securities will not be registered under the United States Securities Act of 1933 and cannot be offered or sold in the United States without registration or exemption.

Positive

• Reduction of $24,500 in outstanding debt through equity issuance
• Debt settlement without using cash resources

Negative

• Shareholder dilution through issuance of 117,500 new shares
• Settlement shares priced at $0.20-0.21, indicating current market conditions

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

VANCOUVER, BC / ACCESSWIRE / October 23, 2024 / Prismo Metals Inc. ("Prismo" or the "Company") (CSE:PRIZ)(OTCQB:PMOMF) announces that it has entered into debt settlement agreements with certain creditors of the Company (the "Creditors") pursuant to which the Company has agreed to issue to the Creditors, and the Creditors have agreed to accept, 100,000 common shares of the Company at a deemed issue price per share of $0.21 and 17,500 common shares of the Company at a deemed issue price per share of $0.20 per share (collectively, the "Settlement Shares") in full and final settlement of aggregate accrued and outstanding indebtedness in the amount of $24,500.

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

How many shares is Prismo Metals (PMOMF) issuing for debt settlement?

Prismo Metals is issuing a total of 117,500 common shares, consisting of 100,000 shares at $0.21 per share and 17,500 shares at $0.20 per share.

What is the total debt amount being settled by Prismo Metals (PMOMF)?

Prismo Metals is settling a total debt amount of $24,500 through the issuance of shares.

What is the hold period for the Settlement Shares issued by Prismo Metals (PMOMF)?

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