Zefiro Methane Strengthens Balance Sheet with Strategic Shares for Debt Settlements

Rhea-AI Summary

Zefiro Methane (OTCQB: ZEFIF) entered debt settlement agreements to eliminate an aggregate of CAD 407,855.97 in outstanding debt with two creditors on November 28, 2025. The settlements call for the issuance of 1,127,273 common shares at a deemed price of CAD 0.275 per share and the grant of 400,000 stock options exercisable at CAD 0.40 with a one-year term. CAD 97,855.97 of the debt will be forgiven for no value. Issuances are subject to a statutory four-month and one-day hold and CBOE Canada approval.

Positive

• Eliminates CAD 407,855.97 in outstanding debt
• Forgives CAD 97,855.97 of debt for no value
• Issues 1,127,273 common shares at CAD 0.275 deemed price
• Grants 400,000 stock options exercisable at CAD 0.40

Negative

• Issuance of 1,127,273 shares increases shareholder dilution
• 400,000 options create potential further dilution if exercised
• Issuance subject to CBOE Canada regulatory approval and conditions

News Market Reaction

-3.22%

1 alert

-3.22% News Effect

On the day this news was published, ZEFIF declined 3.22%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Debt eliminated: CAD 407,855.97 Shares issued: 1,127,273 common shares Debt forgiven: CAD 97,855.97 +4 more

7 metrics

Debt eliminated CAD 407,855.97 Aggregate outstanding debt settled with two creditors

Shares issued 1,127,273 common shares Equity issued as part of debt settlements

Debt forgiven CAD 97,855.97 Portion of total debt forgiven for no value

Option grant 400,000 stock options Granted to creditors under debt settlements

Option exercise price CAD 0.40 per share Exercise price for granted stock options

Option term 1 year Expiration period from grant date

Debt share price CAD 0.275 per share Deemed price for common shares issued in settlement

Market Reality Check

Price: $0.3100 Vol: Volume 1,195 is well belo...

low vol

$0.3100 Last Close

Volume Volume 1,195 is well below the 20-day average of 23,516 (relative volume 0.05). low

Technical Price 0.2234 is trading below the 200-day moving average of 0.28.

Peers on Argus

Several energy peers showed weakness, with GWTI down 13.82%, KLNG down 9.5%, and...

Several energy peers showed weakness, with GWTI down 13.82%, KLNG down 9.5%, and KEGX down 5.64%, aligning with ZEFIF’s -4.5% move.

Historical Context

5 past events · Latest: Dec 01 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 01	Insider purchases	Positive	-3.2%	CEO and directors bought 723,000 shares on the open market.
Nov 28	Debt settlement	Positive	-3.2%	Equity and options issued to eliminate CAD 407,855.97 in debt.
Nov 14	Quarterly earnings	Positive	+6.7%	Record Q1 2026 revenue, EBITDA, and improved cash and equity.
Oct 14	Earnings update	Positive	-0.2%	Preliminary record revenue and positive net income, cash flow.
Oct 09	Governance issue	Negative	-4.0%	Company disclosed investigation involving its former CEO.

Pattern Detected

Positive operational and financial updates have often coincided with flat to negative one-day price reactions, while negative governance news aligned with declines.

Recent Company History

Over the last few months, Zefiro reported record quarterly revenue and EBITDA, improved cash and equity, and highlighted debt reduction priorities. It later provided a preliminary update confirming record Q1 FY2026 results and operational wins. The company then disclosed an investigation into a former CEO, followed by debt-settlement transactions on Nov 28, 2025 and insider open-market share purchases by leadership on Dec 1, 2025. Despite generally positive business trends, short-term price reactions have been mixed.

Market Pulse Summary

This announcement highlighted Zefiro’s use of equity and options to settle CAD 407,855.97 of debt, i...

Analysis

This announcement highlighted Zefiro’s use of equity and options to settle CAD 407,855.97 of debt, including CAD 97,855.97 forgiven, as part of broader balance-sheet strengthening. Investors may track how these transactions affect share count and future financing flexibility. Recent history of record revenue and EBITDA, alongside governance headlines, provides important context as the company balances growth, deleveraging, and potential dilution.

Key Terms

stock options, exercise price, stock option plan, statutory four month and one day hold period, +2 more

6 terms

stock options financial

"and grant 400,000 stock options, each having an exercise price"

Stock options are agreements that give a person the right to buy or sell a company's stock at a specific price within a certain time frame. They are often used as a reward or incentive, similar to a coupon that can be used later if the stock price rises, allowing the holder to make a profit.

exercise price financial

"each having an exercise price of $0.40 per share"

The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.

stock option plan financial

"vesting in accordance with the terms of Zefiro's stock option plan"

A stock option plan is a company program that gives employees the right to buy company shares at a preset price after a certain time, like a coupon allowing purchase later at a fixed rate. It matters to investors because these options can increase the number of shares outstanding — reducing each existing share’s ownership slice and potentially changing per-share results — while also aligning employee incentives with boosting the company’s value.

statutory four month and one day hold period regulatory

"subject to a statutory four month and one day hold period"

A statutory four month and one day hold period is a legal lock-up during which newly issued or privately sold securities cannot be publicly resold for exactly four months plus one day after their issuance or acquisition. For investors this matters because it temporarily reduces the number of shares that can trade, limiting liquidity and potential selling pressure when the lock-up ends—think of it as a quarantine for shares that helps stabilize the market until the restriction lifts.

regulatory approvals regulatory

"subject to certain conditions including the receipt of all necessary regulatory approvals"

Regulatory approvals are official permissions from government agencies that a company needs before launching a new product, service, or business activity. They matter because without this approval, the company might not be allowed to operate legally or sell its products, similar to how a driver needs a license to legally drive a car.

securities laws regulatory

"in accordance with the policies of the CBOE and applicable securities laws"

Securities laws are the rules and enforcement systems that govern the buying, selling and disclosure of stocks, bonds and other investment products; think of them as the traffic laws for financial markets that set what must be disclosed, forbid fraud and require fair dealing. They matter to investors because they help ensure companies provide accurate information, reduce the risk of deception or insider advantage, and make it easier to compare investments and seek remedies if something goes wrong.

AI-generated analysis. Not financial advice.

Fort Lauderdale, Florida--(Newsfile Corp. - November 28, 2025) - ZEFIRO METHANE CORP. (Cboe CA: ZEFI) (FSE: Y6B) (OTCQB: ZEFIF) (the "Company", "Zefiro", or "ZEFI") announced today it has entered into debt settlement agreements (the "Debt Settlements") with two creditors (the "Creditors") to eliminate an aggregate of $407,855.97 CAD in outstanding debt (the "Debt").

The Debt Settlements will involve a combination of equity issuances and a significant write-down by the Creditors of the amounts owing to them pursuant to the Debt Settlements, the Company will issue an aggregate of 1,127,273 common shares in the capital of the Company (the "Debt Shares") and grant 400,000 stock options, each having an exercise price of $0.40 per share, a one-year expiration period from the date of grant, and vesting in accordance with the terms of Zefiro's stock option plan. The Debt Shares will be issued at a deemed price of $0.275 CAD per Debt Share. Notably, $97,855.97 CAD of the total Debt will be forgiven and settled for no value.

The Company views these strategic Debt Settlements as a positive step toward strengthening its balance sheet and reducing its overall debt obligations.

All common shares issued in connection with the Debt Settlement will be subject to a statutory four month and one day hold period, in accordance with the policies of the CBOE Canada Exchange ("CBOE") and applicable securities laws. The issuance of the Debt Shares is subject to certain conditions including the receipt of all necessary regulatory approvals, including the approval of the CBOE.

About Zefiro Methane Corp.

Zefiro is an Environmental Services Company, specializing in methane abatement. Zefiro strives to be a key commercial force towards Active Sustainability. Leveraging decades of operational expertise, Zefiro is building a new toolkit to clean up air, land, and water sources directly impacted by methane leaks. The Company has built a fully integrated ground operation driven by an innovative monetization solution for the emerging methane abatement marketplace. As an originator of high-quality U.S.-based methane offsets, Zefiro aims to generate long-term economic, environmental, and social returns.

For further information, please contact:

Zefiro Investor Relations
1 (800) 274-ZEFI (274-9334)
investor@zefiromethane.com

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information is often, but not always, identified by the use of words such as "seeks", "believes", "plans", "expects", "intends", "estimates", "anticipates" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. In particular, this news release contains forward-looking information including statements regarding: the issuance of Debt Shares and options pursuant to the Debt Settlements. The forward-looking information reflects management's current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof,. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The forward-looking information included in this news release is made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276287

FAQ

What debt did Zefiro Methane (ZEFIF) settle on November 28, 2025?

Zefiro settled an aggregate of CAD 407,855.97 of outstanding debt with two creditors.

How many shares will ZEFIF issue to settle debt and at what price?

Zefiro will issue 1,127,273 common shares at a deemed price of CAD 0.275 per share.

What stock options did Zefiro grant as part of the debt settlements?

Zefiro granted 400,000 options exercisable at CAD 0.40, expiring one year from grant.

How much debt was forgiven in Zefiro's November 28, 2025 settlement?

CAD 97,855.97 of the total debt was forgiven and settled for no value.

Are Zefiro's debt-settlement shares immediately tradable?

No; all shares issued are subject to a statutory four-month and one-day hold period under CBOE and securities laws.

Do Zefiro's debt settlements require regulatory approval?

Yes; issuance of the debt shares is subject to necessary regulatory approvals, including CBOE Canada approval.