Trillion Energy International Announces Debt Settlement Through Share Issuance

Trillion Energy International Inc. has implemented a significant debt settlement strategy involving the issuance of common shares to address outstanding financial obligations. The company plans to settle $101,854.10 in outstanding debt by issuing 2,237,082 common shares to consultants and an officer, a move conducted in full compliance with Canadian securities laws. All shares issued through this settlement arrangement are subject to a standard hold period of four months and one day from the date of issuance, ensuring regulatory compliance while addressing the company's financial liabilities.

The settlement structure includes a notable transaction involving the issuance of 573,002 shares to an officer for management services provided to the company. This particular aspect of the settlement is classified under Multilateral Instrument 61-101 as a 'related-party transaction,' reflecting the involvement of company insiders in the debt resolution process. Trillion Energy is utilizing available regulatory exemptions from the formal valuation and minority shareholder approval requirements, justified by the fact that the insider participation's value does not exceed 25% of the company's market capitalization threshold.

This financial strategy represents a calculated approach to liability management for Trillion Energy, which maintains significant interests in natural gas and oil production operations targeting European and Turkish markets. The company holds substantial stakes in key energy assets, including a 49% interest in the SASB natural gas field and a 19.6% interest in the Cendere oil field. By opting for share-based debt settlement rather than cash payments, Trillion Energy preserves its working capital while effectively reducing its outstanding obligations. This approach demonstrates the company's commitment to maintaining financial stability during a period when many energy companies face challenging market conditions and capital constraints.

The debt settlement through equity issuance reflects a broader trend in the energy sector where companies are exploring creative financial solutions to manage liabilities without compromising operational capabilities. For Trillion Energy specifically, this move helps strengthen the company's balance sheet while minimizing immediate cash outflows, potentially positioning the company for more sustainable growth in its core European and Turkish energy markets. The transaction's structure, particularly the use of regulatory exemptions for related-party transactions, showcases the company's understanding of securities regulations and its ability to navigate complex financial arrangements within legal parameters.