Planet Based Foods Global Inc. Announces Execution of Term Sheets for Related Party Debt Settlement

Core Viewpoint - Planet Based Foods Global Inc. has entered into binding term sheets to settle $800,000 of debt through the issuance of subordinate voting shares, subject to compliance with Canadian Securities Exchange policies and finalization of debt settlement agreements [1][2]. Debt Settlement Details - The debt will be satisfied by issuing shares equal to the debt divided by the greater of $0.05 or 75% of the closing price of the company's shares on the trading day before the news release [2]. - The shares will be subject to a four-month hold period under Canadian securities laws [2]. Nature of Debt - The debt arose from Baron providing compliance and financial services and Coenda covering certain operating expenses and working capital advances for the company [3]. - The creditors are considered related parties under Multilateral Instrument 61-101, making the debt settlement agreements "related party transactions" [3]. Financial Exemptions - The company intends to rely on exemptions from formal valuation and minority approval due to serious financial difficulty, aiming to improve its financial position through the debt settlement agreements [4]. Material Change Report - A Material Change Report has been filed to avoid an event of default, which would occur if the debt is not repaid within five business days following a demand from the creditor [5]. Company Overview - Planet Based Foods Global Inc. focuses on sustainable ingredients and plant-based solutions, aiming to contribute to a cleaner and more resilient global food system [6].