Zefiro Methane Strengthens Balance Sheet with Strategic Shares for Debt Settlements

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.

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

Argus Dec 1 session

-3.22% close to close Open Argus

Details

News Market Reaction – ZEFIF

On Dec 1, the first trading day after this news, ZEFIF closed 3.22% below the previous close.

Data tracked by StockTitan Argus for the Dec 1 session.

Key Figures

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

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

Historical Context

5 past events · Latest: Dec 01

5 events

1. Dec 01

   Insider purchases

   24h Move

   -3.2%

   CEO and directors bought 723,000 shares on the open market.

2. Nov 28

   Debt settlement

   24h Move

   -3.2%

   Equity and options issued to eliminate CAD 407,855.97 in debt.

3. Nov 14

   Quarterly earnings

   24h Move

   +6.7%

   Record Q1 2026 revenue, EBITDA, and improved cash and equity.

4. Oct 14

   Earnings update

   24h Move

   -0.2%

   Preliminary record revenue and positive net income, cash flow.

5. Oct 09

   Governance issue

   24h Move

   -4.0%

   Company disclosed investigation involving its former CEO.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

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. How Rhea-AI works. Not financial advice.

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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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

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.