Trillion Energy International Inc. has completed a debt settlement transaction involving the issuance of 2,237,082 common shares to settle $101,854.10 in outstanding obligations. The shares will be subject to a four-month and one-day hold period in compliance with Canadian securities laws. This strategic debt resolution allows Trillion Energy to manage its financial obligations while preserving cash resources for its ongoing operations.
The settlement includes 573,002 shares issued to an officer for management services, which is categorized as a related-party transaction under Multilateral Instrument 61-101. The company has utilized available exemptions from formal valuation and minority shareholder approval requirements, as the insider participation remains below 25% of its market capitalization. This approach demonstrates the company's method of handling corporate financial commitments through equity transactions, a common practice among publicly traded companies seeking to balance debt reduction and operational funding.
The company, which focuses on oil and natural gas production in Europe and Türkiye, holds significant energy assets including a 49% interest in the SASB natural gas field in the Black Sea and a 19.6% interest in the Cendere oil field. By settling debt through share issuance rather than cash payments, Trillion Energy preserves capital that can be directed toward developing these energy projects and maintaining production operations. The transaction represents a strategic financial management decision that aligns with the company's broader operational objectives in the energy sector.
This debt settlement method provides insight into how smaller energy companies manage financial obligations while maintaining operational capabilities. The use of equity for debt settlement allows companies like Trillion Energy to conserve cash for critical operational needs while addressing outstanding financial commitments. The transaction structure, including the mandatory hold period for the issued shares, ensures compliance with regulatory requirements while facilitating the company's financial restructuring efforts.
