Snipp Interactive Announces Completion of Debt Settlement

Rhea-AI Summary

Snipp Interactive has secured approval from the TSX Venture Exchange for a shares-for-debt transaction, resolving $130,000 in indebtedness to related parties. This involved issuing 8,666,667 common shares at a price of $0.015 per share, effectively extinguishing the debt. The shares are subject to a four-month hold period and were issued under exemptions from certain regulatory requirements.

Snipp, headquartered in Vancouver, offers digital marketing promotions, rebates, and loyalty solutions, focusing on providing a comprehensive marketing technology platform.

Positive

• Debt of $130,000 extinguished through share issuance.
• Company reliance on equity financing indicates potential for stronger liquidity.

Negative

• Related party transaction may raise issues regarding governance and investor confidence.
• Issuing shares for debt can lead to shareholder dilution.

VANCOUVER, BC / ACCESSWIRE / August 21, 2020 / Snipp Interactive Inc. ("Snipp" or the "Company") (TSXV:SPN)OTC:PINK:SNIPF), a global provider of digital marketing promotions, rebates and loyalty solutions, announces that following an earlier announcement in its August 6, 2020 news release, it has received the approval of the TSX Venture Exchange ("TSX-V") for the shares for debt transaction to settle the aggregate of $130,000 in indebtedness of the Company to four officers, two directors and five employees (the "Related Parties") through the issuance to the Related Parties of 8,666,667 common shares of the Company (the "Settlement Shares") at a deemed price of $0.015 per Settlement Share (the "Debt Settlement"). Accordingly, the Company announces that the Settlement Shares have now been issued and the debt extinguished.

The Settlement Shares issued in connection with the Debt Settlement have been issued in reliance on certain prospectus and registration exemptions under applicable securities legislation and will be subject to a hold period of four months and a day.

Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Debt Settlement constitutes a "related party transaction" as related parties of the Company subscribed for common shares. The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101.

About Snipp:
Snipp is a global loyalty and promotions company with a singular focus: to develop disruptive engagement platforms that generate insights and drive sales. Our solutions include shopper marketing promotions, loyalty, rewards, rebates and data analytics, all of which are seamlessly integrated to provide a one-stop marketing technology platform. We also provide the services and expertise to design, execute and promote client programs. SnippCheck, our receipt processing engine, is the market leader for receipt-based purchase validation; SnippLoyalty is the only unified loyalty solution in the market for CPG brands. Snipp has powered hundreds of programs for Fortune 1000 brands and world-class agencies and partners.

Snipp is headquartered in Vancouver, Canada with offices across the United States, Canada, Ireland, Europe, and India. The company is publicly listed on the Toronto Stock Venture Exchange (TSX-V) in Canada and is also quoted on the OTC Pink marketplace under the symbol SNIPF.

FOR FURTHER INFORMATION PLEASE CONTACT:
Snipp Interactive Inc.
Jaisun Garcha
Chief Financial Officer
investors@snipp.com

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the company or the materials required to produce those products, labour relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. The reader is cautioned not to put undue reliance on such forward-looking statements.

Neither the TSX Venture Exchange 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 release.

Copyright Snipp Interactive Inc. All rights reserved. All other trademarks and trade names are the property of their respective owners.

SOURCE: Snipp Interactive Inc.

View source version on accesswire.com:
https://www.accesswire.com/602846/Snipp-Interactive-Announces-Completion-of-Debt-Settlement

FAQ

What is the purpose of Snipp Interactive's debt settlement?

The debt settlement was to extinguish $130,000 in indebtedness by issuing 8,666,667 common shares.

How will the debt settlement affect Snipp Interactive's shares?

The settlement involved issuing shares at a deemed price of $0.015, which may dilute existing shareholder value.

What is the status of the Settlement Shares from Snipp Interactive?

The Settlement Shares will be subject to a hold period of four months and a day.

What is the TSX-V's role in Snipp Interactive's debt settlement?

The TSX Venture Exchange approved the shares-for-debt transaction to settle the company's indebtedness.

What risks are associated with Snipp Interactive's related party transaction?

Related party transactions may raise governance issues and potentially affect investor trust.