Zonetail Inc. Announces Conditional Approval for Shares-for-Debt Transaction
Toronto, Ontario — March 13, 2026 — Leads & Copy — Zonetail Inc. (TSX-V: ZONE) has received conditional approval for a proposed shares-for-debt transaction to settle up to 22,267,789 in debt consideration. The settlement involves up to $445,355.78 of debt at a price of $0.02 per common share.
The company is proposing these settlements to preserve cash for future operations.
Subject Insiders, including CEO Mark Holmes, CFO Errol Farr, Chairman Paul Scott, Director Geoffrey Gelb, and Director Chip Rogers, plan to participate in the Shares-for-Debt Transaction. They intend to settle debts in the amounts of $81,000, $129,924, $58,500, $32,487, and $32,487, respectively.
According to the policies of the TSX Venture Exchange, the issuance of Shares to Insiders requires disinterested shareholder approval if the deemed value of the shares to be issued exceeds $5,000 per month per person or $10,000 per month in the aggregate. Zonetail will seek this approval for the Shares-for-Debt Transaction related to the Subject Insiders at its annual general and special meeting on March 18, 2026.
Completion of the transaction is subject to customary closing conditions, including TSX Venture Exchange approval. All securities issued will have a statutory hold period of four months and one day, as per Canadian securities laws.
The participation of Subject Insiders is a “related party transaction” under TSXV policies and Multilateral Instrument 61-101. The company is relying on exemptions from minority shareholder approval and formal valuation requirements under sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the Common Shares issued to the insiders does not exceed 25% of Zonetail’s market capitalization.
Zonetail Inc. (TSXV: ZONE) operates a mobile platform and market network designed to connect high-rise residents to products, amenities, and services, aiming to optimize home management.
Source: Zonetail Inc.
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