Spetz Announces Proposed $500,000 Offering, Shares for Debt Settlements and Restructuring of Convertible Debentures
Spetz Inc. (CSE:SPTZ)(OTC Pink:DBKSF) has announced multiple financial initiatives to address its current financial difficulties. The company is arranging a $500,000 private placement offering at $0.10 per share, planning to settle $445,645.89 in accounts payable through share issuance, and restructuring $1,017,673 in outstanding debt primarily from matured convertible debentures.
The new debentures will be convertible into units at $0.20 per unit, with each unit including one common share and half a warrant exercisable at $0.40. The company warns that without completing these transactions, there is significant doubt about its ability to continue as a going concern, as it currently lacks sufficient funding for ongoing operations.
Spetz Inc. (CSE:SPTZ)(OTC Pink:DBKSF) ha annunciato diverse iniziative finanziarie per affrontare le attuali difficoltà economiche. L'azienda sta organizzando un offerta di collocamento privato da $500,000 a $0.10 per azione, pianificando di regolare $445,645.89 in conti da pagare attraverso l'emissione di azioni, e ristrutturando $1,017,673 di debito in sospeso principalmente derivante da obbligazioni convertibili scadute.
I nuovi debiti saranno convertibili in unità a $0.20 per unità, con ogni unità che include un'azione ordinaria e mezzo warrant esercitabile a $0.40. L'azienda avverte che, senza completare queste transazioni, ci sono dubbi significativi sulla sua capacità di continuare come entità operante, poiché attualmente manca di finanziamenti sufficienti per le operazioni in corso.
Spetz Inc. (CSE:SPTZ)(OTC Pink:DBKSF) ha anunciado múltiples iniciativas financieras para abordar sus dificultades económicas actuales. La compañía está organizando una oferta de colocación privada de $500,000 a $0.10 por acción, planeando saldar $445,645.89 en cuentas por pagar a través de la emisión de acciones, y reestructurando $1,017,673 en deuda pendiente, principalmente de obligaciones convertibles vencidas.
Los nuevos bonos serán convertibles en unidades a $0.20 por unidad, con cada unidad que incluye una acción ordinaria y medio warrant ejercitable a $0.40. La compañía advierte que, sin completar estas transacciones, existe una duda considerable sobre su capacidad para continuar como un negocio en funcionamiento, ya que actualmente carece de financiamiento suficiente para sus operaciones en curso.
Spetz Inc. (CSE:SPTZ)(OTC Pink:DBKSF)는 현재의 재정적 어려움을 해결하기 위한 여러 금융 이니셔티브를 발표했습니다. 이 회사는 $500,000의 사모 투자 유치를 $0.10의 주당 가격으로 계획하고 있으며, 주식 발행을 통해 $445,645.89의 미지급금을 정산할 계획입니다. 또한, 만료된 전환 사채로 인한 $1,017,673의 미결제가 구조조정될 것입니다.
새로운 사채는 주당 $0.20로 단위로 전환 가능하며, 각 단위는 하나의 보통주와 $0.40에 행사 가능한 절반의 워런트를 포함합니다. 회사는 이러한 거래를 완료하지 않으면 지속 가능한 기업으로서의 능력에 상당한 의문이 있다고 경고하며, 현재 진행 중인 운영에 대한 충분한 자금이 부족하다고 강조합니다.
Spetz Inc. (CSE:SPTZ)(OTC Pink:DBKSF) a annoncé plusieurs initiatives financières pour faire face à ses difficultés financières actuelles. La société organise une offre de placement privé de $500,000 à $0.10 par action, prévoyant de régler $445,645.89 en comptes à payer par l'émission d'actions, et de restructurer $1,017,673 de dettes en attente, principalement provenant d'obligations convertibles échues.
Les nouvelles obligations seront convertibles en unités à $0.20 par unité, chaque unité comprenant une action ordinaire et un demi-warrant exerçable à $0.40. L'entreprise avertit qu'en l'absence de la réalisation de ces transactions, il existe des doutes significatifs quant à sa capacité à continuer en tant qu'entité opérationnelle, car elle manque actuellement de financement suffisant pour ses opérations en cours.
Spetz Inc. (CSE:SPTZ)(OTC Pink:DBKSF) hat mehrere finanzielle Maßnahmen angekündigt, um mit den aktuellen finanziellen Schwierigkeiten umzugehen. Das Unternehmen plant eine private Platzierungsangebot über $500,000 zu einem Preis von $0.10 pro Aktie, um $445,645.89 an Verbindlichkeiten durch die Ausgabe von Aktien zu begleichen und $1,017,673 an ausstehendem Schulden, hauptsächlich aus fälligen wandelbaren Anleihen, umzustrukturieren.
Die neuen Anleihen werden zu Einheiten zu $0.20 pro Einheit wandelbar sein, wobei jede Einheit eine Stammaktie und einen halben Warrant enthält, der zu $0.40 ausübbar ist. Das Unternehmen warnt, dass ohne den Abschluss dieser Transaktionen erhebliche Zweifel an seiner Fähigkeit bestehen, als fortführendes Unternehmen zu agieren, da es derzeit nicht über ausreichende Mittel für die laufenden Betriebe verfügt.
- Secured interim relief through board compensation waiver
- Debenture holders agreed to extend maturity date to December 31, 2024
- Potential debt restructuring could provide financial flexibility
- Company lacks sufficient funding to continue as going concern
- Significant dilution risk for existing shareholders
- Outstanding debt of over $1 million in matured convertible debentures
- Unable to secure additional funding due to challenging market conditions
- High interest rate of 12% on new debentures
TORONTO, ON / ACCESSWIRE / December 27, 2024 / SPETZ INC. (the "Company" or "Spetz") (CSE:SPTZ)(OTC Pink:DBKSF) is pleased to announce that it is arranging a private placement offering (the "Offering") of up to 5,000,000 Common Shares, at a price of
The Offering
Spetz intends to close the Offering shortly. The proceeds from the Offering will be used for general working capital purposes and to seek additional business opportunities that will create value.
Spetz does not anticipate any insider participation in the Offering, or the creation of a new insider or control person as a result of the closing of the Offering. No finder's fees or other compensation will be paid in connection with the Offering.
Shares for Debt Transactions
The Company is proposing to settle an aggregate of
New Debentures
Spetz is working to issue new convertible debentures in the aggregate principal amount of
The Company believes that the Offering, the Shares for Debt Transactions and the New Debentures are in the best interests of the Company, and the foregoing have been approved by the independent directors of the Company as well due to the fact that the completion of the proposed transactions, taken as a whole, would result in the issuance of more than
The Company has explored several avenues to secure additional funding in order to continue ongoing operations and to service its outstanding debt obligations. To date, the Company has been unable to secure any such funding due to challenging capital markets conditions for venture issuers and the Company's current debt obligations. The Company recently secured some interim relief (see press release dated November 29, 2024) wherein the board of directors waived their compensation and the current holders of the outstanding secured debentures agreed to extend the maturity date from October 31, 2024 to December 31, 2024.
The Company currently does not have sufficient funding to continue as a going concern, and therefore, if the proposed Offering, the Shares for Debt Transactions and the New Debentures are not completed, and no alternative arrangements are secured, there is significant doubt about the Company's ability to continue as a going concern.
The Company's independent directors have also determined that the Offering, the Shares for Debt Transactions and the New Debentures are in the best interests of the Company and reasonable based on the Company's current financial circumstances in order keep the Company solvent. The Company's independent directors have determined that neither (i) seeking shareholder approval for the Offering, the Shares for Debt Transactions and the New Debentures nor (ii) a rights offering to existing securityholders on the same terms as the Offering would be feasible to complete, based on the Company's immediate liquidity requirements.
All securities issued pursuant to the Offering, the Shares for Debt Transactions and the New Debentures will be subject to a statutory hold period expiring four months and one day after the closing of the Offering, the Shares for Debt Transactions and the New Debentures, respectively. Completion of the Offering, the Shares for Debt Transactions and the New Debentures is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the Canadian Securities Exchange.
None of the securities issued in the Offering, the Shares for Debt Transactions or the New Debentures will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.
About Spetz Inc.
Spetz Inc. is a multinational technology company that operates Spetz, a global online, AI-powered marketplace platform that dynamically connects consumers to nearby top-rated service providers in around 30 seconds. Spetz is available in the USA, United Kingdom, Australia, and Israel. The Spetz vision is to reinvent how people around the world connect to services in their moment of need. Connecting them immediately with the top-matched service provider for any need, anytime, anywhere.
Spetz Website: www.spetz.app
Spetz Investor information: https://investor.spetz.app/
Company Contacts:
Investor Relations
Email: Investors@spetz.app
Phone: 647-956-6033
NEITHER THE CANADIAN SECURITIES EXCHANGE, NOR THEIR REGULATION SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Cautionary Note Regarding Forward-looking Statements
Certain information herein constitutes "forward-looking information" as defined under Canadian securities laws, which reflect management's expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the Company. The words "plans", "expects", "does not expect", "scheduled", "estimates", "intends", "anticipates", "does not anticipate", "projects", "believes", or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "might", "occur", "be achieved", or "continue" and similar expressions identify forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.
Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements.
SOURCE: Spetz Inc.
View the original press release on accesswire.com
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