Trillion Energy International Inc. (CSE: TCF) (OTCQB: TRLEF) has announced a strategic move to settle $386,295.42 in debt by issuing 7,725,908 common shares at $0.05 per share to directors, officers, and consultants. This decision underscores the company's approach to managing its financial obligations while adhering to regulatory requirements. Notably, 3.9 million of these shares are allocated to management in a related-party transaction, which is conducted under the provisions of MI 61-101, bypassing the need for a formal valuation and minority approval due to the transaction's size relative to the company's market capitalization.
The issuance of shares to settle debt is a common practice among companies seeking to preserve cash while fulfilling their financial commitments. However, this move by Trillion Energy is particularly noteworthy due to its compliance with Canadian securities laws, including a mandatory four-month-plus-one-day hold period on all issued shares. This ensures that the transaction is transparent and in the best interest of all stakeholders.
Trillion Energy International Inc. is focused on oil and natural gas production, with significant assets in Europe and Türkiye. The company's strategic financial decisions, such as this debt settlement, are crucial for its operational sustainability and growth in the competitive energy sector. For more details on Trillion Energy's operations and financial strategies, interested parties can visit https://www.sedar.com and the company’s newsroom.
