Storm Exploration Announces Shares for Debt Transaction

Storm Exploration Inc. has declared plans to settle a total debt of $219,000 owed to some creditors by issuing about 4,380,000 common shares. Each share is set at a deemed price of $0.05. This settlement requires the nod from the TSX Venture Exchange. Aimed at addressing its working capital inadequacy, the company sees this move as beneficial. The insiders' share of the debt amounts to $160,000. Certain exemptions under Multilateral Instrument 61-101 facilitate this part of the deal without necessitating a valuation or minority shareholder approval. The consideration's fair market value granted to insiders doesn't exceed 25% of the company's market cap.

The shares distributed for debt settlement will be bound by a four-month plus one day holding period from their issue date. The company projects this transaction will improve its financial stance while maintaining the interests of its stakeholders.