Everyday People Financial settles debt with share issue

Everyday People Financial has announced its decision to settle a portion of debt owed to EAM Enterprises Inc. by issuing common shares.

The board of directors at Everyday People Financial approved the Debt Settlement as part of the company's strategy to bolster its financial standing by reducing liabilities and safeguarding cash for operational and growth purposes, especially within its Revenue Cycle Management segment.

Gordon Reykdal, the founder and Executive Chairman of Everyday People, played a crucial role in the company's early development phases, providing personal loans through EAM Enterprises. These loans were significant for establishing the backbone of the company's present operations.

As detailed in financial statements for the period ending 30 September 2024, the company owed EAM a total of USD $5,380,599. A total of 2,439,024 common shares will be issued to EAM to settle USD $2 million of this debt, valued at USD $0.82 per share.

This issuance will occur as a non-arm's length transaction. EAM is a company under the control of Gordon Reykdal, who is also the Executive Chairman and Director at Everyday People. As of 31 December 2023, EAM and Gordon Reykdal together held 18.7% of the company's shares, which will increase to 20.8% following the Debt Settlement.

The move requires approval from the TSXV. Should this be authorised, EAM and Gordon Reykdal's holdings will constitute 20.8% of the company's overall shares. The issued Settlement Shares will be subject to a mandatory hold period of four months plus one day, as required by the relevant securities laws and TSXV policies.

The issuance of these shares to EAM is classified as a "related party transaction" under the Multilateral Instrument 61-101, which protects minority security holders in specific transactions. Everyday People Financial is making use of exemptions from the formal valuation and minority shareholder approval stipulations in this case, as the transaction's value does not surpass 25% of the company's market capitalisation.

This Debt Settlement was evaluated and authorised by the independent directors of Everyday People Financial.