HIRE Technologies Announces Debenture Interest Payment in Equity

Rhea-AI Summary

HIRE Technologies Inc. (TSXV:HIRE)(OTCQB:HIRRF) announced that it has paid $73,620 in interest to debenture holders by issuing 2,103,425 common shares at a deemed price of $0.035 each, fulfilling its obligation as of December 31, 2022. A director received 12,857 shares for a related party transaction involving $450 in interest. The company is exempt from formal valuation and minority approval requirements, as the director's participation does not exceed 25% of its market cap. HIRE aims to modernize human resources solutions and aims to strengthen its market position through scalable operations.

Positive

• Completed interest payment of $73,620 via share issuance, reducing cash outflow.
• Increased equity participation may enhance shareholder confidence.
• Managing related party transaction within regulatory exemptions.

Negative

• Equity issuance may dilute existing shareholders' ownership.
• Related party transaction raises potential concerns about governance.

TORONTO, ON / ACCESSWIRE / January 20, 2023 / HIRE Technologies Inc. (TSXV:HIRE)(OTCQB:HIRRF) ("HIRE" or the "Company"), a company focused on modernizing and digitizing human resources solutions, today announces further to its news release dated January 19, 2023, that it has satisfied its obligation to pay $73,620 in interest to the holders of its 9% unsecured debentures issued August 21 and 24, 2020 (the "Debentures") as of December 31, 2022, by issuing 2,103,425, common shares of the Company. The common shares were issued at a deemed price of $0.035 per share in full satisfaction of the December 31 interest payment obligation in accordance with the terms of the Debentures.

A director and officer of the Company ("Interested Party") is a holder of certain Debentures and received 12,857 shares in connection with the settlement of $450 in interest, which constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation and minority approval requirements in sections 5.5(a) and 5.7(1)(a) on the basis that participation in the settlement by the Interested Party does not exceed 25% of the fair market value of the Company's market capitalization.

About HIRE Technologies Inc.

HIRE is a growing capital allocator that is rapidly establishing itself as a market leader in workforce management and staffing. HIRE's mission is to create a world-class portfolio of brands that will define the future of human resources through synergies, scale, and reach. The Company has extensive experience in building and growing staffing and executive search companies and is supported by a large recurring revenue base and a highly scalable shared services platform. This structure enables HIRE to create value for partners and shareholders. For more information, visit hire.company.

Contacts

Simon Dealy
Chief Executive Officer
(647) 264-9196
sdealy@hire.company

Neither the TSXV 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 news release.

This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of HIRE and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "aim", "anticipate", "appear", "believe", "consider", "could", "estimate", "expect", "if", "intend", "goal", "hope", "likely", "may", "plan", "possibly", "potentially", "pursue", "seem", "should", "whether", "will", "would" and similar expressions. Statements set out in this news release relating to HIRE's expectations as to future growth and results are all forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Readers are referred to the risk factors associated with the business of the Company set out in the Company's most recent management's discussion and analysis of financial condition available at www.SEDAR.com. Except as required by law, the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

SOURCE: HIRE Technologies Inc.

View source version on accesswire.com:
https://www.accesswire.com/736113/HIRE-Technologies-Announces-Debenture-Interest-Payment-in-Equity

FAQ

What is the recent development regarding HIRE Technologies Inc. and its debentures?

HIRE Technologies Inc. paid $73,620 in interest on its debentures by issuing shares, fulfilling its obligation.

How many shares did HIRE Technologies issue for the interest payment?

The company issued 2,103,425 common shares at a deemed price of $0.035 each.

What are the implications of the related party transaction for HIRE Technologies?

The transaction involves a director receiving shares for interest payment, relying on exemptions from formal evaluations.

How does the share issuance affect HIRE Technologies’ shareholders?

The issuance may dilute existing shareholders' ownership and impact their interests.