MyndTec Inc. Announces Debt Settlement Agreement
Mississauga, Ontario–(Newsfile Corp. – July 6, 2023) – MyndTec Inc. (CSE: MYTC) (“MyndTec” or the “Company”), an emerging force in neurological treatment and rehabilitation, is pleased to announce that it has entered into a debt settlement agreement (the “Debt Settlement Agreement”) as of May 29, 2023, with an arm’s length creditor (the “Creditor”) to settle an outstanding debt in the amount of $756,120.56 (the “Debt”) (the “Transaction”). The Debt comprises the outstanding balance owed by the Company under a previous loan agreement (the “Loan Agreement”) between the Creditor and the Company.
Pursuant to the Debt Settlement Agreement, the parties entered into a subscription and debt to share conversion agreement, under which an aggregate amount of $378,061.60, comprising approximately 50% of the total amount of the Debt, will be satisfied in full and final settlement by the Company through the issuance and delivery of 540,088 fully paid common shares in the capital of the Company (the “Common Shares”) with an assigned issue price of $0.70 per share (the “Debt Shares”) (the “Shares For Debt Transaction”). The Debt Shares are being issued at a price equal to the closing market price of the Common Shares on the Canadian Securities Exchange (“CSE”) on July 5, 2023, being $0.70 per share, in accordance with the policies of the CSE.
Pursuant to the Debt Settlement Agreement, the parties also entered into a debt compromise and release agreement (the “Debt Compromise and Release Agreement”), under which an aggregate amount of $378,058.96, comprising approximately 50% of the total amount of the Debt, shall be compromised and forgiven by the Creditor, and the Company shall be forever discharged and released therefrom, effective on and as of May 29, 2024, conditional upon the Company failing, by such date, to commercialize the product developed from the proceeds of the loan advanced to the Company under the Loan Agreement (as further provided for in the Loan Agreement).
The board of directors of the Company has determined that it is in the best interests of the Company to settle the outstanding Debt by the issuance of the Common Shares in order to preserve the Company’s cash for ongoing operations.
Closing of the Shares For Debt Transaction is subject to customary closing conditions and intends to close as soon as practicable. The Debt Shares will be issued pursuant to a prospectus exemption and will be subject to a hold period of four months and a day from the date of issuance.
About MyndTec
MyndTec is a Canadian medical technology company dedicated to the development and commercialization of innovative products that improve function, maximize independence and enhance the quality of life for individuals who have suffered injury to the central nervous system as a result of stroke, spinal cord injury and certain traumatic brain injuries. The Company develops non-invasive neurological and nervous system electrical stimulation therapeutics for the treatment of neurological diseases and injury specifically targeted to markets with large, growing and global patient populations.
The Company’s flagship product MyndMove™ is a non-invasive functional electrical stimulation-based intervention. MyndMove™ uses neuroplasticity mechanisms to stimulate development of new neural efferent and afferent pathways allowing patients to re-establish voluntary movement and improve independence in their activities of daily living. The MyndMove™ system offers trained therapists the ability to assist individuals affected with paralysis to improve voluntary control of their limbs. The MyndMove™ therapy system offers a broad spectrum of sophisticated functional electrical stimulation software protocols which therapists customize to patient needs to enable meaningful controlled movements via proprietary stimulation technology.
For more information visit https://www.myndtec.com.
Contact Information
Craig Leon
MyndTec Inc. | Chief Executive Officer
investor.relations@myndtec.com
Tel: (416) 569-0430
Bill Mitoulas
Venture North Capital Inc. | Principal
billm@venturenorthcapital.com
Tel: (416) 479-9547
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements that constitute “forward-looking information” within the meaning of applicable Canadian securities laws (collectively “forward-looking statements”). All statements in this news release that are not historical facts are forward-looking statements, including, but not limited to, all statements regarding: events, performance or results of operations that the Company believes, expects or anticipates will or may occur in the future; and the completion and timing of the Transaction. Forward-looking statements are typically, but not always, identified by words such as: “believes”, “expects”, “aim”, “anticipates”, “intends”, “estimates”, “plans”, “may”, “should”, “could”, “continue”, “would”, “will”, “potential”, “scheduled”, “goal”, “target”, or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements are necessarily based on a number of estimates and assumptions that include, but are not limited to: expected future development; general economic conditions; the ability of the Company to execute on its business objectives; and other estimates and assumptions described in the Company’s Listing Statement dated February 18, 2022 (the “Listing Statement”), a copy of which is available under the Company’s profile on SEDAR at www.sedar.com. Forward-looking statements are inherently subject to a number of significant risks and uncertainties that could cause the actual results or events to differ materially from those described in the forward-looking statements. Important risks and uncertainties that could cause actual results or events to differ materially from expectations include, but are not limited to: the Company’s ability to continue as a going concern, the Company’s research, development and commercialization of its products could be stopped or delayed if any third party fails to provide sufficient quantities of products or components, or fails to do so at acceptable quality levels or prices, or fails to maintain or achieve satisfactory regulatory compliance; the Company expects to incur significant ongoing costs and obligations relating to its investment in infrastructure, growth, research and development, regulatory compliance and operations; and other risks and uncertainties described in the Listing Statement. The Company has attempted to identify important factors that could cause actual results, performance or achievements to vary from those expectations expressed or implied by the forward-looking statements, however, there may be other factors that cause results, performance or achievements not to be as expected and that could cause actual results, performance or achievements to differ materially from current expectations. These forward-looking statements are only current as of the date of this news release. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and the Company provides no assurance that they will prove to be correct. Readers should not place undue reliance on such forward-looking statements. The Company does not undertake any obligation to update forward-looking statements contained herein, other than as required by applicable law. All forward-looking statements are qualified in their entirety by this cautionary statement.
The CSE has in no way passed upon the merits of the business of the Company and has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
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