Trillion Energy International Announces Debt Settlement Through Share Issuance

Trillion Energy International Inc. has taken a significant step toward managing its financial liabilities by announcing a debt settlement plan involving the issuance of common shares. The company plans to settle $101,854.10 in outstanding debt by issuing 2,237,082 common shares to consultants and an officer. This move is in compliance with Canadian securities laws, with the shares subject to a hold period of four months and one day. The settlement represents a strategic financial maneuver that underscores Trillion Energy's commitment to maintaining operational and financial stability while navigating the complexities of debt management.

The settlement includes a notable transaction where 573,002 shares are issued to an officer for management services, classified under Multilateral Instrument 61-101 as a 'related-party transaction.' Trillion Energy is leveraging available exemptions from the formal valuation and minority shareholder approval requirements, given that the insider participation's value does not exceed 25% of the company's market capitalization. This approach allows the company to efficiently address its financial obligations while maintaining compliance with regulatory frameworks.

This debt settlement through share issuance reflects a proactive approach to financial management, potentially setting a precedent for similar companies facing financial challenges. The company, focused on oil and natural gas production for Europe and Türkiye, holds significant interests in natural gas and oil fields, including a 49% stake in the SASB natural gas field and a 19.6% interest in the Cendere oil field. By converting debt to equity, Trillion Energy demonstrates its ability to creatively manage financial pressures while preserving its core operations and strategic positioning in the energy sector.

The importance of this announcement lies in its demonstration of how resource companies can navigate financial challenges through strategic debt management. By settling obligations through share issuance rather than cash payments, Trillion Energy conserves capital for operational needs while addressing creditor relationships. This approach maintains the company's financial flexibility during a period when energy companies face various market pressures and operational challenges. The transaction's structure, particularly the use of regulatory exemptions for related-party transactions, shows sophisticated corporate governance in managing complex financial situations.