UNTC Issues 19.7M Securities to Settle $200K Debt, Wins 45-Unit Franchise Deal
UNTC•UNTC settled $200,920 of liabilities by issuing 10,175,923 common shares and 9,537,000 units at $0.01 each, with warrants exercisable at $0.05 for five years. Its Heal Wellness arm secured a 45-unit franchise agreement across Ontario, Saskatchewan and Manitoba over three years.
1. Debt Settlement Transaction
UNTC completed a securities-for-debt deal settling $200,920 of liabilities by issuing 10,175,923 common shares and 9,537,000 units at $0.01 per security. Each unit includes one share and a warrant exercisable at $0.05 for five years, with all securities subject to a four-month hold period.
2. Cash Preservation and Dilution Impact
The transaction preserves cash on the balance sheet but increases the total share count by over 19.7 million securities, posing potential dilution for existing shareholders. Completion is subject to customary closing conditions and approval by the TSX Venture Exchange.
3. Franchise Development Agreement
Heal Wellness, part of UNTC’s portfolio, signed a multi-unit franchise development agreement to open and operate 45 locations across Ontario, Saskatchewan and Manitoba over the next three years. The rollout is led by Alex Rechichi, Bedford Park Capital and other strategic partners.
4. Growth Prospects
The planned franchise expansion is expected to bolster UNTC’s revenue growth and brand penetration in key Canadian provinces, while the debt settlement enhances near-term liquidity management.
