Star Navigation Announces Completion of Shares for Debt Transaction

Rhea-AI Summary

Star Navigation Systems Group (CSE: SNA) has completed a shares for debt transaction, issuing 89,505,600 units at $0.005 per unit, reducing debt by $447,528. Each unit comprises one common share and one warrant, with warrants exercisable at $0.05 per share over a 5-year period.

The securities are subject to a four-month statutory hold period. Proceeds will support working capital needs, specifically for operations development and sales/marketing initiatives for the Star-A.D.S.® system.

Positive

• Debt reduced by $447,528
• 5-year warrant coverage provides future funding potential
• Strengthens balance sheet through debt elimination

Negative

• Significant shareholder dilution with 89.5M new units issued
• Low unit price of $0.005 indicates weak market position
• Warrant exercise price at $0.05 represents potential future dilution

Brampton, Ontario--(Newsfile Corp. - February 25, 2025) - Star Navigation Systems Group Ltd. (CSE: SNA) (CSE: SNA.CN) ("Star" or the "Company") is pleased to announce that it has closed a shares for debt transaction. The transaction resulted in the issuance of 89,505,600 units in the capital of the Company ("Units") at a purchase price of $0.005 per Unit for a total reduction of debt of $447,528. Each Unit consists of one common share in the capital of the Company and one warrant. Each of the warrants acquired entitles the holder to purchase one (1) additional common share of the Company at five ($0.05) cents per warrant exercised. The warrants are exercisable during the five (5) year period from the date of issue.

All securities issued in the Offering and any shares issued upon exercise of warrants are subject to a four-month statutory hold period from the date of issuance. The net proceeds of the private placement will be used for working capital for further development of the operations, sales and marketing efforts surrounding the Star-A.D.S.® system.

About Star Navigation:

Star Navigation Systems Group Ltd. manufactures the In-flight Safety Monitoring System, STAR-ISMS®, the heart of the STAR-A.D.S.® System. The STAR-A.D.S.® System has real-time capability of tracking, performance trends and predicting incident-occurrences which enhances aviation safety and improves fleet management while reducing costs for the operator. Star's MMI Division (Military and Defence) designs and manufactures high performance, mission critical, flight deck flat panel displays for defence and commercial aviation industries worldwide.

Forward-Looking Information

Certain statements in this news release may constitute "forward-looking statements." Forward-looking statements are statements that address or discuss activities, events or developments that Star expects or anticipates may occur in the future.

When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "projects", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements.

Forward-looking statements reflect the current expectations and beliefs of Star's management. Because forward-looking statements involve known and unknown risks, uncertainties and other factors, actual results, performance or achievements of Star or the industry may be materially different from those implied by such forward-looking statements.

Examples of such forward-looking information that may be contained in this news release include statements regarding; growth and future prospects of our business; our perceptions of the industry and markets in which we operate and anticipated trends in such markets; expectations regarding the operation of our app; and our future revenues.

Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking statements may include, but are not limited to, our ability to execute on our business plan, increase visibility amongst consumers and convert users to revenue producing subscribers and the success of the business of our partners.

Forward-looking statements involve significant uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved.

Should one or more of these factors or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

Accordingly, readers should exercise caution in relying upon forward-looking statements and Star undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.

NEITHER CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CANADIAN SECURITIES EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Please visit www.star-navigation.com or contact
Mr. Randy Koroll, CEO at 1-416-252-2889 #228 or randy.koroll@star-navigation.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242305

FAQ

What is the value of Star Navigation's (SNAVF) recent debt reduction transaction?

Star Navigation reduced its debt by $447,528 through issuing units at $0.005 each.

How many shares were issued in Star Navigation's (SNAVF) February 2025 debt transaction?

89,505,600 units were issued, each consisting of one common share and one warrant.

What are the terms of the warrants issued in SNAVF's debt transaction?

Warrants are exercisable at $0.05 per share over a 5-year period from issuance date.

How will Star Navigation (SNAVF) use the proceeds from this transaction?

Proceeds will fund working capital for operations development and marketing of the Star-A.D.S.® system.