Toronto-based Cult Food Science, a company specialising in lab-grown meat and cellular agriculture, has successfully finalised debt settlement agreements totalling $149,850. This strategic move aims to enhance the company’s financial stability while preserving cash for operational needs.
Under the terms of the settlement agreements, Cult issued a total of 2,997,000 shares at a deemed price of $0.05 per share. Notably, 1,017,000 of these shares will be subject to a hold period of four months and one day, in accordance with National Instrument 45-105 – Prospectus Exemptions.
The remaining 1,980,000 shares are exempt from such restrictions under Ontario Securities Commission Rule 72-503, which governs distributions outside Canada.
The board of directors determined that this debt settlement was in the best interests of the company, allowing it to conserve cash for working capital purposes. This decision reflects a proactive approach to managing the company’s financial resources amidst a challenging economic landscape.
Cult Food Science is positioned as a disruptive player in the food technology sector, focusing on the commercialisation of lab-grown meat and cellular agriculture. The company’s robust investment portfolio includes a variety of cutting-edge, venture-backed firms within this rapidly evolving field.
By addressing its debt obligations, Cult aims to bolster its operational capacity and continue its commitment to reshaping the global food industry.
The lab-grown meat sector has garnered significant attention as consumer demand for sustainable and ethically produced food alternatives grows. Companies like Cult are at the forefront of this movement, leveraging innovative technologies to produce meat without the environmental and ethical concerns associated with traditional livestock farming.
The completion of these debt settlements comes at a critical time for the cellular agriculture industry, which is navigating both regulatory hurdles and market uncertainties. As companies strive to bring lab-grown products to market, maintaining a solid financial foundation is essential for operational success and investor confidence.
