FLUENT Corp. Transforms Director Fees Into Equity Shares
FLUENT Corp. Shares for Debt Settlement Initiative
FLUENT Corp. (CSE: FNT.U) recently shared a significant update regarding its financial strategies. In an interesting move, the company announced plans to issue 2,750,000 common shares to select directors as part of a debt settlement agreement. This transaction involves the cancellation of director fees amounting to US$137,500, which were due for the period prior to the transaction.
Details of the Share Issuance
The common shares, referred to as "Debt Shares," will be priced at the closing market price of US$0.05 as listed on the Canadian Securities Exchange (CSE) prior to this transaction. This approach enables FLUENT to manage its financial obligations while also aligning the interests of the management team with the shareholders, thereby creating a synergy between the two parties.
Understanding Related Party Transactions
This share issuance is classified as a "related party transaction" under Multilateral Instrument 61-101, designed to protect minority shareholders. The directors of FLUENT have affirmed that the valuation of these shares is deemed fair for the company. They are opting to leverage exemptions from certain approval processes as both the market value of the issued shares and the debt do not exceed 25% of FLUENT's market capitalization.
Company's Intentions Behind the Move
The decision to forgo a material change report more than 21 days before the transaction was primarily due to the timing of finalizing the debt amounts. The company aims to act promptly in reducing accrued liabilities. The issued shares will be subjected to a hold period of four months, ensuring compliance with regulatory standards.
About FLUENT Corp.
FLUENT Corp. operates as a national cannabis brand, committed to delivering high-quality cannabis products. With a diverse portfolio featuring brands such as MOODS, Knack, Wandr, and Hyer Kind, FLUENT continues to expand its presence in the cannabis sector across various markets. The company maintains a strong operational foothold in cultivation and retail, with substantial facilities and a dedicated workforce that supports its growth trajectory.
Operational Excellence
Headquartered in Tampa, Florida, FLUENT boasts eight cultivation and manufacturing facilities along with 42 retail locations. The company's commitment is evident in its comprehensive approach towards operational excellence — focusing on cultivation, distribution, and retailing cannabis products.
Investment Opportunities in Cannabis Sector
As the cannabis market evolves, FLUENT Corp. highlights the need for strategic investments that comply with local regulations. While cannabis remains a controlled substance federally in the United States, the company operates within the confines of legal frameworks laid by individual states. Investors may find FLUENT’s commitment to regulatory compliance and market growth an attractive opportunity.
Frequently Asked Questions
What is the purpose of the Debt Shares issuance by FLUENT Corp.?
The Debt Shares are issued to settle director fees amounting to US$137,500, thereby allowing the company to manage its debts while aligning management and shareholder interests.
How does FLUENT define the issuance as a related party transaction?
This classification falls under Multilateral Instrument 61-101, which is designed to protect minority shareholders during transactions where the interests of the directors are involved.
What is the significance of the CSE for FLUENT Corp.?
The Canadian Securities Exchange (CSE) is where FLUENT Corp. trades its shares, providing a platform for its common shares which promote transparency and accessibility in the market.
What brands does FLUENT operate under?
FLUENT operates several brands, including MOODS, Knack, Wandr, Bag-O, and Hyer Kind, catering to a diverse range of consumer preferences in the cannabis market.
How can investors learn more about FLUENT Corp.?
Interested investors can access more information via their website, which provides insights into the company’s operational framework, product offerings, and financial updates.
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