QScreen AI Settles $681K Debt with Directors
News related to:QScreen AI Inc · 2 min read
QScreen AI Inc., an innovator in physiological AI screening and developer of an intelligence platform for clinical and occupational health applications, has announced a significant debt settlement. The company has agreed to settle an aggregate of $681,000 of indebtedness owing to certain directors and officers of the Company through the issuance of approximately 9.73 million common shares of the Company at a deemed price of $0.07 per Common Share (the "Settlement Price").
The Settlement Price represents a premium of approximately 180% to the $0.025 closing price of the Common Shares on the CSE on September 18, 2026, and a premium of approximately 40% to the $0.05 price per unit under the Company's non-brokered private placement that closed on September 9, 2026. By agreeing to settle the indebtedness at a price significantly above both benchmarks, the participating directors and officers have reduced the number of Common Shares issuable pursuant to the Debt Settlement, thereby limiting dilution to existing shareholders.
The Debt Settlement eliminates $681,000 of liabilities from the Company's balance sheet without requiring any cash expenditure, allowing the Company to preserve its cash resources for ongoing operations and commercialization initiatives in the United States, Mexico, and the European Union.
The Debt Settlement 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 the exemptions from the formal valuation and minority shareholder approval requirements contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, respectively, on the basis that neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the Debt Settlement exceeds 25% of the Company's market capitalization.
All securities issued pursuant to the Debt Settlement will be subject to a statutory hold period expiring four months and one day from the date of issuance in accordance with applicable Canadian securities laws and the policies of the Canadian Securities Exchange (CSE).
QScreen AI screening tools provide risk assessment and decision support only. They are not diagnostic medical devices and are not intended to replace professional medical judgment.
The debt settlement is a significant step in reducing the Company's financial burden, enabling it to allocate its resources more effectively towards its strategic initiatives in the United States, Mexico, and the European Union. This move underscores the Company's commitment to maintaining a strong balance sheet while continuing to invest in its innovative platform and expanding its market presence.
The debt settlement is expected to have a positive impact on the Company's financial health, allowing it to maintain its focus on growth and innovation in the health technology sector. The Company's management remains committed to delivering value to its shareholders and stakeholders, and this debt settlement is a testament to its ongoing efforts to optimize its financial structure.