Trillion Energy International Announces Debt Settlement Through Share Issuance

Trillion Energy International Inc. has taken a significant step towards managing its financial liabilities by announcing a debt settlement plan involving the issuance of common shares. The company plans to settle $101,854.10 in outstanding debt by issuing 2,237,082 common shares to consultants and an officer. This move is in compliance with Canadian securities laws, with the shares subject to a hold period of four months and one day. The settlement represents a strategic approach to debt management that allows the company to preserve cash while addressing financial obligations.

The settlement includes a notable transaction where 573,002 shares are issued to an officer for management services, classified under Multilateral Instrument 61-101 as a 'related-party transaction.' Trillion Energy is leveraging available exemptions from the formal valuation and minority shareholder approval requirements, given that the insider participation's value does not exceed 25% of the company's market capitalization. This approach demonstrates the company's adherence to regulatory frameworks while efficiently managing its financial restructuring.

This strategic financial maneuver underscores Trillion Energy's commitment to maintaining its operational and financial stability while navigating the complexities of debt management. The company, focused on oil and natural gas production for Europe and Türkiye, holds significant interests in natural gas and oil fields, including a 49% stake in the SASB natural gas field and a 19.6% interest in the Cendere oil field. This debt settlement through share issuance reflects a proactive approach to financial management, potentially setting a precedent for similar companies facing financial challenges in the energy sector.

The implications of this debt settlement extend beyond immediate financial relief, potentially enhancing the company's balance sheet and improving its financial ratios. By converting debt to equity, Trillion Energy reduces its debt burden while potentially increasing shareholder equity, which could positively impact the company's valuation and investor perception. The transaction's compliance with Canadian securities laws and the use of available exemptions for related-party transactions demonstrate the company's commitment to transparent and regulatory-compliant financial practices.