Trillion Energy International Inc. (CSE: TCF) (OTCQB: TRLEF) has announced a significant financial maneuver to settle outstanding debts totaling $386,295.42 through the issuance of 7,725,908 common shares at a price of $0.05 per share. This decision directly involves the company's directors, officers, and consultants, with 3.9 million shares allocated to management in a related-party transaction. This transaction is conducted under the provisions of MI 61-101, with the company utilizing exemptions from the formal valuation and minority approval requirements, citing that the insider portion of the transaction does not exceed 25% of the company's market capitalization.
The issuance of shares as a method to settle debt is a notable strategy that reflects the company's current financial strategy and its efforts to manage liabilities without immediate cash outflow. All shares issued under this arrangement will be subject to a four-month-plus-one-day hold period in compliance with Canadian securities law, ensuring a regulated and transparent process for all parties involved.
This development is particularly relevant for investors and stakeholders in the energy sector, as it provides insight into Trillion Energy's financial health and strategic priorities. The company, which focuses on oil and natural gas production for Europe and Türkiye, holds significant assets in the SASB natural gas field and the Cendere oil field. The decision to settle debt through share issuance rather than cash payment may indicate a strategic prioritization of liquidity for operational and exploratory activities, which are crucial for the company's growth and sustainability in the competitive energy market.
For further details on Trillion Energy International Inc. and its operations, interested parties can refer to official filings available on www.sedar.com and the company's official website. This move by Trillion Energy is a clear indicator of the company's adaptive strategies in financial management and its implications for the energy sector's broader financial practices.
