Breaking News: Rakovina Offers Debentureholders Shares as Partial Payment for Interest Obligations!
Description
VANCOUVER, British Columbia, Dec. 17, 2024 (GLOBE NEWSWIRE) — Rakovina Therapeutics Inc. (“Rakovina” or the “Company”) (TSX-V: RKV) announces that in accordance with the terms of an indenture entered into between the Company and Odyssey Trust Company (“Odyssey”) dated May 29, 2023 (the “Indenture”), certain holders (each, a “Debentureholder”) of 12.0% unsecured convertible debentures of the Company (the “Debentures”) have elected to receive common shares of the Company (the “Common Shares”) in lieu of cash in partial satisfaction of an aggregate total of approximately $91,000 interest payable to all holders of the Debentures on November 28, 2024 (the “Interest Payment Date”) and, in connection therewith, the Company has entered into a debt settlement agreement with Odyssey as of the date hereof. Approximately $20,500 of the interest payable under the Debentures will be settled by the issuance of Common Shares with the remaining amount to be settled in cash.
Effect on Individuals
Individuals who hold debentures in Rakovina Therapeutics Inc. will have the option to receive common shares of the company as partial payment for interest obligations. This could provide an opportunity for debentureholders to become shareholders in the company and potentially benefit from any future growth or success of Rakovina.
Effect on the World
This move by Rakovina to offer common shares as partial payment for interest obligations could set a precedent in the financial industry. If more companies start offering shares as a form of debt settlement, it could change the way businesses manage their finances and debt obligations. This innovative approach could have a ripple effect globally, influencing how companies interact with their debtholders.
Conclusion
Rakovina’s decision to offer debentureholders shares as partial payment for interest obligations is a unique and forward-thinking strategy that could have far-reaching implications. It provides an alternative solution for managing debt obligations while also potentially benefitting debentureholders in the long run. This innovative approach could pave the way for new ways of debt settlement in the financial industry.
