Accordingly, the Debt Settlement represents an increase in his ownership from 31.6% to 40.6% of the outstanding Common Shares on an undiluted basis.
Sweeney owned, directly and indirectly, 29,282,803 Common Shares, representing 31.61% of the then outstanding Common Shares. Prior to the completion of the Debt Settlement, Mr. Sweeney acquired beneficial ownership and control, and direction over a total of 8,333,333 Common Shares, which represents 8.99% of the outstanding Common Shares on an undiluted basis.
The Options are subject to the terms of the Company's 10% rolling stock option plan and the approval and requirements of the TSX. Sweeney was granted these options due to taking a reduced salary. The Options vest immediately upon issuance and are exercisable until February 8, 2028, at an exercise price of $0.035 per share. The Company also announces that it has granted, effective February 8, 2023, stock options to purchase 2,966,221 common shares of the Company to Mr. The debt conversion is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 pursuant to subsections 5.5(b) and 5.7(1)(a), respectively, of MI 61-101, as the Common Shares are not listed on a specific market, and the fair market value of the Common Shares to be issued to related parties pursuant to the Debt Settlement will not exceed 25% of the Company's market capitalization. Sweeney is a "related party transaction" under MI 61-101. Accordingly, the Debt Settlement between the Company and Mr. Sweeney is considered a "related party" to the Company under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (" MI 61-101"). Neil Sweeney, the Chief Executive Officer of the Company, has agreed to convert $250,000 of the debt owed to him. In addition, the Common Shares issued pursuant to the Debt Settlement will be subject to a four-month hold period from the date of issuance.
The Debt Settlement is subject to the approval of the TSX Venture Exchange (the " TSXV"). The Company determined to satisfy the foregoing indebtedness with Common Shares in order to preserve its working capital. The Company plans to settle indebtedness of approximately $420,000, or 25.6% of the company's debt, by issuing 14,000,000 Common Shares at a deemed price of $0.03 per Common Share. (TSXV: MYID) (the " Company") is pleased to announce that it has entered into agreements to satisfy certain outstanding indebtedness owed to specific arm's length and non-arms length creditors (the " Creditors") through the issuance of common shares (the " Common Shares") of the Company (the " Debt Settlement").
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