Cansortium Inc. Engages Directors in Innovative Debt Settlement
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Cansortium Inc. Engages Directors in Innovative Debt Settlement
Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF), a vertically-integrated cannabis company under the Fluent™ brand, has recently made a significant move by issuing 865,382 common shares in exchange for settling debts owed to its directors. This decision provides valuable insight into the company’s commitment to financial responsibility and operational efficiency. The directors will receive these shares as compensation for US$112,500 in director fees accumulated from a specific past period, showcasing a proactive approach towards managing debts.
Understanding the Debt Shares Issuance
The company’s board of directors has given their approval for this arrangement, which allows for the settlement of dues through share issuance rather than cash payments. The Debt Shares are valued at US$0.13 each based on the market price recorded on the Canadian Securities Exchange (CSE), reinforcing the company's strategy to maintain liquidity while honoring its financial obligations.
Implications of Related Party Transactions
This debt settlement can be classified as a related party transaction, which is governed under Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (MI 61-101). The directors of Cansortium have confirmed that this decision aligns with fair market values, thereby upholding the company’s commitment to transparency and integrity in its dealings.
Efficient Management of Financial Liabilities
While Cansortium intended to file a material change report ahead of the transaction's closing, the specifics were finalized closer to the date, prioritized for expediency in reducing accrued liabilities. Such promptness signifies the company’s focus on a sustainable financial model, ensuring that obligations are tackled without unnecessary delays. Moreover, all issued Debt Shares will be governed by a four-month holding period, further illustrating responsible financial stewardship.
About Cansortium Inc.
Cansortium is a leading cannabis company with operations extending into multiple states, committed to delivering high-quality cannabis products. Operating under the Fluent™ brand, their philosophy centers on operational excellence across key stages of the supply chain, including cultivation, production, distribution, and retail. Headquartered in Tampa, the company champions a mission that prioritizes community engagement and superior product quality, ensuring the satisfaction of their customers.
Continued Commitment to Operational Excellence
Through these developments, Cansortium Inc. is reinforcing its strategic pivot toward enhancing shareholder value, as evidenced by the dual trading of shares on both the CSE and the OTCQX Best Market. The stock symbols TIUM.U and CNTMF reflect a market presence that is dynamic and forward-looking. This innovative debt settlement approach not only alleviates financial pressure but also illustrates the company's agile response to market conditions, showcasing Cansortium’s adaptability in a competitive industry.
Frequently Asked Questions
What is the recent share issuance by Cansortium about?
Cansortium has issued 865,382 common shares to pay off US$112,500 in director fees, promoting financial efficiency.
How does this transaction comply with related party regulations?
The transaction qualifies as a related party transaction under MI 61-101, ensuring fair market value accords are met.
What is the significance of the share price in this issuance?
The Debt Shares are priced at US$0.13 each, based on the closing market value on the CSE, reflecting transparent governance.
Why was there no advance material change report filed?
Details of the transaction were finalized closer to the closing date, prompting an expedited approach to manage liabilities.
How does Cansortium ensure product quality in its operations?
The company focuses on operational excellence in all supply chain processes, prioritizing high-quality cannabis products for its customers.
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