Cult Food Science has made announcements regarding its corporate governance and financial strategy, aimed at enhancing its operational efficiency in the evolving food technology landscape.

RSUs granted

The company has granted a total of 5 million restricted share units (RSUs) as part of its compensation strategy. Specifically, 1.5 million RSUs have been allocated to company officers, while 3.5 million RSUs have been designated for consultants.

Each RSU can be converted into one common share of the company at no additional cost, with a vesting period of two years. However, these shares will be subject to a hold period of four months and one day, aligning with regulatory requirements.

Debt settlement agreements

Meanwhile, in a move to manage its financial obligations, Cult Food Science has entered into debt settlement agreements to address outstanding debts totaling CAD 149,850 (approx. $104,000). The company will issue approximately 2.997 million shares at a deemed price of CAD 0.05 per share to settle these debts. Of these, 1.017 million shares will be subject to the aforementioned hold period, while 1.98 million shares will not face any restrictions, following Ontario Securities Commission regulations.

The board of directors has determined that this debt settlement is crucial for preserving cash flow, allowing the company to allocate resources more effectively toward its operational needs and growth initiatives.

Leadership changes

The company has also announced a change in its executive leadership. Francis Rowe has resigned from his roles as chief financial officer and corporate secretary, as well as from the board of directors. The company expressed gratitude for Rowe's contributions during his tenure.

Steve Vanry has been appointed to fill the vacant positions on the board and will assume the roles of chief financial officer and corporate secretary. Vanry brings 25 years of experience in senior management across various sectors, including public and private companies, with expertise in capital markets, corporate finance, and regulatory compliance. His background may provide valuable insights as CULT navigates the complexities of the cellular agriculture market.

Clarifications on previous announcements

Cult Food Science has clarified details concerning a previous announcement from December 19, 2024, regarding a non-brokered private placement of convertible debenture units. The company noted that any potential reduction in the conversion or exercise price below CAD 0.05 would require approval from the Canadian Securities Exchange, which is unlikely to be granted.

The company operates within a rapidly evolving sector focused on sustainable food production. As consumer demand for alternative protein sources increases, the company’s strategic decisions, including management restructuring and financial maneuvers, are critical for maintaining its competitive edge.