Cansortium Takes Strategic Steps for Financial Flexibility
Cansortium's Debt Settlement Initiative
Cansortium Inc. has officially reported a strategic initiative to enhance its financial position by issuing common shares in exchange for debt settlement. The company, recognized for its operations under the Fluent™ brand, has provided 865,382 Debt Shares to its directors, effectively clearing a debt of US$112,500 related to incurred director fees over a specific period.
Details of the Share Transaction
This debt settlement is part of an effort to maintain sound financial management. Each Debt Share is priced at US$0.13, aligning with the closing market price on the Canadian Securities Exchange, reinforcing Cansortium's commitment to operational transparency. To ensure a smooth transition, the board largely approved the exchange prior to this announcement, showcasing the company's governance diligence.
Understanding Related Party Transactions
The issuance of Debt Shares falls under the classification of a 'related party transaction'. In accordance with Multilateral Instrument 61-101, the directors involved affirmed that the terms of this exchange were fair and reasonable. By relying on the exemptions set out in this instrument, Cansortium successfully navigates the path of maintaining compliance while also managing its liabilities effectively.
Upcoming Director Payments
In addition, the directors will receive their fees for the upcoming quarter in common shares, reaffirming their commitment to the company’s long-term performance. The determination of this payment type corresponds with the market value at the end of the upcoming fiscal quarter, ensuring alignment with shareholder interests.
About Cansortium Inc.
Cansortium is a leading cannabis company dedicated to delivering quality products and services in various states. The organization focuses on operational excellence in cultivation, production, distribution, and retail, positioning itself as a trusted presence in the cannabis market. Cansortium aims to deliver the highest quality services while nurturing the communities it supports.
Corporate Philosophy
The philosophy driving Cansortium is rooted in continuous improvement and dedication to quality. This approach is perceived as vital in an industry poised for rapid growth and transformation.
Contact Information
For inquiries or further information about Cansortium, individuals can reach out to their CEO, Robert Beasley, at investors@cansortiuminc.com or visit their investor relations page.
Frequently Asked Questions
What is the purpose of the Debt Shares issued by Cansortium?
The Debt Shares are issued to clear a specific amount of debt owed to directors, enhancing the company's financial flexibility.
How does this transaction align with corporate governance?
The transaction was approved by the board to ensure compliance with good governance practices while managing liabilities effectively.
What can shareholders expect from this initiative?
Shareholders can expect a stronger balance sheet and potential share price stability through prudent financial management.
Who can I contact for more information about Cansortium?
Individuals can contact CEO Robert Beasley or use the investor relations email for inquiries.
What is Cansortium's main business focus?
Cansortium primarily focuses on cannabis cultivation, production, distribution, and retail operations under the Fluent™ brand.
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