Trillion Energy International Inc. has taken a significant step toward managing its financial liabilities by announcing a debt settlement plan involving the issuance of common shares. The company plans to settle $101,854.10 in outstanding debt by issuing 2,237,082 common shares to consultants and an officer. This move is in compliance with Canadian securities laws, with the shares subject to a hold period of four months and one day. The settlement represents a strategic financial maneuver that underscores Trillion Energy's commitment to maintaining operational and financial stability while navigating the complexities of debt management.
The settlement includes a notable transaction where 573,002 shares are issued to an officer for management services, classified under Multilateral Instrument 61-101 as a 'related-party transaction.' Trillion Energy is leveraging available exemptions from the formal valuation and minority shareholder approval requirements, given that the insider participation's value does not exceed 25% of the company's market capitalization. This approach allows the company to efficiently address its financial obligations while maintaining compliance with regulatory frameworks.
This debt settlement through share issuance reflects a proactive approach to financial management that could potentially set a precedent for similar companies facing financial challenges. The company, focused on oil and natural gas production for Europe and Türkiye, holds significant interests in natural gas and oil fields, including a 49% stake in the SASB natural gas field and a 19.6% interest in the Cendere oil field. By converting debt into equity, Trillion Energy preserves cash flow while strengthening its balance sheet, positioning itself for continued operations in the competitive energy sector. The transaction demonstrates how resource companies can utilize creative financial solutions to manage liabilities without compromising their core business activities.
