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Toronto, Ontario--(Newsfile Corp. - April 15, 2024) - NuGen Medical Devices Inc. (TSXV: NGMD) (the "Company" or "NuGen") announces that it has agreed to settle an aggregate of €275,000 of indebtedness owed to Care4Pharma B.V. ("Care4Pharma"), an arm's length creditor (the "Creditor"), with respect to monies owed pursuant to the share purchase agreement between the Company and Care4Pharma dated June 30, 2021 (the "Share Purchase Agreement"), through the issuance of an aggregate of 2,000,000 common shares (the "Common Shares") of the Company at a deemed price of $0.20 per Common Share (the "Debt Settlement"). The Company has elected to settle the indebtedness through the issuance of Common Shares to preserve cash and improve the Company's balance sheet.
The Debt Settlement remains subject to receipt of all necessary corporate and regulatory approvals, including the final approval of the TSX Venture Exchange. All Common Shares issued in connection with the Debt Settlement shall be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
Further, the Company announces that it has agreed to extend certain payment obligations under the Share Purchase Agreement with Care4Pharma to allow the Company to repay the €1,200,000 payment originally due to Care4Pharma on March 8, 2023 at any time on or prior to November 8, 2026 with interest of eight percent (8%) per annum on any unpaid amounts calculated from November 8, 2021. In consideration for the extension of time for repayment, the Company has agreed to pay Care4Pharma an additional €275,000 to be paid on or prior to November 8, 2026, such amount to be paid immediately following the completion of a financing of the Company in the minimum amount of C$3,500,000. For further information regarding the Share Purchase Agreement and related terms please see the prospectus of the Company dated September 29, 2021 available on the Company's SEDAR profile at www.sedarplus.ca.
Nugen CEO Ian Heynen commented "I am very pleased to see this agreement to the extension of time for repayment. I have been in significant discussions with Care4Pharma including a live meeting in the Netherlands with their CEO. This agreement reflects their belief in our strategic direction: enhancing clinical marketing to accelerate our InsujetTM opportunity, while opening up new opportunities for growth with Biosimilars. It allows us to continue to focus our cash on our key growth priorities and I want to thank Care4Pharma for their partnership in getting this done."