Debt Settlement Marks Another Milestone in Reklaim's Financial Stability, Following a Year of Consistent Profitability
NEW YORK, Oct. 10, 2024 /PRNewswire/ - Reklaim Ltd. (OTCQB: MYIDF) (TSXV: MYID) ("Reklaim" or the "Company"), (the "Company"), the destination where consumers can view, edit, add and option their data for direct compensation, is pleased to announce a significant step in its financial strategy by reducing outstanding debt by approximately 11%. The Company has agreed to satisfy $100,000 of indebtedness owed to a non-arms length creditor through the issuance of 1,111,111 common shares at a deemed price of $0.09 per share (the "Debt Settlement").
Reklaim your data $MYID $MYIDF (CNW Group/Reklaim Ltd.)
This latest conversion follows a strong year for Reklaim, during which the Company has maintained consistent profitability. Most recently, Reklaim achieved a positive EBITDA of $154,290 for Q2 2024, positioning the Company for continued financial growth. The issuance price per share was based on the closing trading price of the Company's shares on the TSX-V on October 4th, 2024.
This strategic debt reduction aligns with Reklaim's ongoing commitment to enhance shareholder value and improve financial stability. The Debt Settlement is a critical component of the Company's broader capital strategy, designed to optimize its capital structure while minimizing dilution and fueling future growth.
All securities issued as part of the Debt Settlement are subject to a statutory hold period of four months plus one day from the issuance date. This transaction will not result in creating a new Control Person for the Company.
With this debt settlement, Reklaim is well-positioned to pursue new opportunities, expand its consumer base, and continue enhancing profitability in upcoming quarters.
Final approval of the Debt Settlement is subject to TSX approval.
Additionally the Company is pleased to announce the appointment of Stuart Pasternak as its new CFO, succeeding Dean Wood. Mr. Pasternak, CPA, CA, brings over 30 years of expertise in financial and strategic planning, as well as corporate and risk management, across both public and private sectors.
About Reklaim Ltd
Reklaim provides compliant data to Fortune 500 brands, platforms, and data companies, empowering consumers to take control of their personal information. By visiting Reklaim, users can confirm their identity and uncover data that has been collected and sold without their explicit consent. Through a Reklaim account, consumers can choose to either monetize their data or safeguard it using Reklaim's suite of privacy tools. For more information, visitReklaim's investor page.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will," "may," "should," "anticipate," "expects," and similar expressions. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the closing of the Debt Settlement and TSXV approval of the Debt Settlement, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are risks detailed from time to time in the filings made by the Company with securities regulators.
The reader is cautioned that assumptions used in preparing any forward-looking information may prove incorrect. Events or circumstances may cause actual results to differ materially from those predicted due to numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, the Company cannot guarantee that any forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on any forward-looking information. Although considered reasonable by management during preparation, such information may prove incorrect, and actual results may differ materially from those anticipated. This cautionary statement expressly qualifies forward-looking statements in this news release. The forward-looking statements in this news release are made as of the date of this news release. The Company will only update or revise any of the included forward-looking statements as expressly required by Canadian securities law.
This press release includes references to "EBITDA," which is not defined under the International Financial Reporting Standards (IFRS). This non-IFRS measure intends to provide additional helpful information to investors and analysts. This non-IFRS measure does not have a standardized meaning prescribed by IFRS and is, therefore, unlikely to be comparable to similar measures presented by other entities. As such, this non-IFRS measure should not be considered in isolation or used as a substitute for performance measures prepared per IFRS. EBITDA is calculated as income before interest, taxes, depreciation, and amortization expenses. EBITDA is considered a useful measure by the management of Reklaim to understand its profitability, excluding the effects of capital structure, taxation, and depreciation, but it may not be appropriate for other purposes. EBITDA is not defined under IFRS and should not be considered an alternative to, or more meaningful than, income (loss) and comprehensive income (loss).
