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Zonetail Inc. Provides Update to Proposed $445,355 Shares-for-Debt Transaction
(TheNewswire) NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNI...
About this update from Zonetail, Inc.
Zonetail Inc. Provides Update to Proposed $445,355 Shares-for-Debt Transaction (TheNewswire) NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES   Toronto, Ontario – TheNewswire - March 12, 2026 – Zonetail Inc. (TSX-V: ZONE) (“Zonetail” or the “Company”) is pleased to announce that it has received conditional approval for a proposed shares-for-debt transaction, pursuant to which it intends to settle up to 22,267,789 in consideration for the settlement of up to $445,355.78 of debt (the “Shares-for-Debt Transaction”) at a price of $0.02 per common share in the capital of the Corporation (“Shares”). The Company is proposing to complete these settlements to preserve cash to fund future operations.   Mark Holmes, CEO, Errol Farr, CFO, Paul Scott, Chairman, Geoffrey Gelb, Director and Chip Rogers, Director, (together, the “Subject Insiders”) intend to participate in the Shares-for-Debt Transaction by settling debt in the amounts of $81,000,  $129,924, $58,500, $32,487 and $32,487 respectively. Pursuant to the policies of the TSX Venture Exchange (the “TSXV”), the issuance of Shares pursuant to a settlement of debt to “Insiders” (as that term is defined in the policies of the TSXV) requires disinterested shareholder approval if the deemed value of the shares to be issued (excluding reimbursement shares issued as reimbursement of out-of-pocket expenses and cash advances) exceed $5,000 per month per person or $10,000 per month in the aggregate. The Company will be seeking disinterested shareholder approval for the Shares-fort-Debt Transaction as it relates to the Subject Insiders, at its upcoming annual general and special meeting of shareholders to be held on March 18, 2026.   Completion of the Shares-for-Debt Transaction will be subject to customary closing conditions, including the receipt of all necessary approvals including the approval of the TSX Venture Exchange. All securities issued will be subject to a statutory hold period of four months and one day, in accordance with applicable Canadian securities laws.   Related Party Transaction The participation of Subject Insiders in the Shares-for-Debt Transaction is considered to be a “related party transaction” as defined und...