Clarification on Debt Settlement and Share Issuance Details

Understanding the Correction Notice on Debt Settlement

Clear Blue Technologies International Inc. (TSXV: CBLU) (OTCQB: CBUTF) announces a clarification to a prior release regarding a significant debt settlement transaction. This correction highlights important details about the conversion of debt into shares and its implications for the company’s stock structure.

Details of the Shares for Debt Transaction

The company managed to settle about $8.77 million in debt through negotiations with debenture holders and creditors. This settlement involved the conversion of the debt into units containing Common Shares and Warrants. Each unit consists of one Common Share and a corresponding warrant, priced at $0.03 per unit with each warrant valid for 24 months at a strike price of $0.05.

The Role of BDC Capital

BDC Capital Inc., a key player in this transaction, opted to convert $2.2 million of its convertible debenture into units as part of the Shares for Debt Transaction. This step resulted in the issuance of 73,333,333 Common Shares and an equal number of Warrants. Prior to this transaction, BDC Capital had control over 4.9 million Common Shares and significantly contributed to this debt restructuring.

Share Distribution and Control

Post-transaction, BDC Capital holds a substantial number of shares, totaling 78,233,333 Common Shares alongside 73,333,333 Warrants. This means BDC Capital now controls approximately 16.88% of the total issued Common Shares on a non-diluted basis and up to 28.23% on a partially diluted basis, assuming the exercise of their warrants. This repositioning is vital as it signals a stronger stake in the company moving forward.

Market and Ownership Insights

BDC Capital's influence over its holdings may change depending on market conditions and regulatory stipulations. The company emphasizes that adjustments to their ownership could occur through various avenues such as market transactions or private agreements. Hence, it is crucial for stakeholders to stay informed regarding any shifts in ownership.

What This Means for Investors

This correction ultimately highlights the growing financial strategies that Clear Blue Technologies is utilizing to stabilize and enhance its capital structure. For investors, understanding these adjustments is pivotal as they reflect the company’s proactive approach in managing debt and expanding its share base.

How to Stay Updated

For further details about these developments, stakeholders can find relevant documents and updates filed under Clear Blue's profile on SEDAR+. Keeping track of these filings is essential for anyone involved with the company’s financials or investment potential.

Frequently Asked Questions

What is the purpose of the correction notice?

The correction notice aims to clarify details surrounding the debt settlement and share issuance associated with Clear Blue Technologies, ensuring transparency for investors.

Who are the main players involved in this transaction?

BDC Capital Inc. is prominently involved, having converted a significant amount of its convertible debenture into shares under the debt settlement agreement.

What percentage of shares does BDC Capital now own?

After the transactions, BDC Capital owns approximately 16.88% of the total issued Common Shares on a non-diluted basis and up to 28.23% on a partially diluted basis.

How can investors track future announcements?

Investors can stay updated by regularly checking the company’s profile on SEDAR+ for filings and press releases relating to company developments.

What impact does this settlement have on Clear Blue Technologies' future?

This settlement is expected to strengthen the company’s financial position, allowing for improved growth prospects and operational flexibility.

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