Reklaim Ltd. Extends Expiring Debentures and Closes Debt Settlement

Reklaim Ltd. (TSXV: MYID) (OTCQB: MYIDF), a leading platform empowering consumers to access and control their personal data, has recently announced two significant financial developments. The company has extended the maturity date of its senior secured debenture held by Neil Sweeney, the CEO and a director, and completed a debt settlement agreement. These moves reflect Reklaim's commitment to enhancing its financial health and stability.

On February 25, 2025, Reklaim announced the extension of the maturity date of its senior secured debenture held by Neil Sweeney from February 24, 2025, to February 12, 2027. This extension, evidenced by an amended and restated debenture, is a testament to the company's ability to secure favorable terms with its stakeholders and maintain its financial flexibility. The Amended and Restated Debenture is in the principal amount of $205,000, reflecting repayments made by the Company to Mr. Sweeney, and contains substantially the same terms as the original 2022 Debenture.

The extension of the debentures allows Reklaim to maintain its liquidity and financial flexibility in both the short and long term. By extending the maturity date, the Company gains more time to manage its cash flow and reduce its debt burden, ultimately enhancing its financial health and stability. This extension also highlights Reklaim's commitment to sound financial management and its ability to navigate market uncertainties effectively.

In another significant development, Reklaim completed a debt settlement agreement on October 20, 2023, and announced it on October 24, 2023. This agreement enabled the company to settle indebtedness of $100,000 owed to a specific non-arm's length creditor through the issuance of common shares at a deemed price of $0.08 per share. The common shares issued pursuant to the Debt Settlement are subject to a four-month hold period from the date of issuance.

The debt settlement agreement is a strategic move by Reklaim to improve its balance sheet and overall financial health. By reducing its debt, the company frees up cash flow, enabling it to invest in growth opportunities, such as product development, marketing, and strategic partnerships, without the burden of high-interest payments. This reduction also enhances Reklaim's financial flexibility, allowing it to respond to market changes and pursue new opportunities more effectively.

In conclusion, Reklaim Ltd.'s extension of expiring debentures and completion of the debt settlement agreement are significant steps towards enhancing the company's financial stability. These moves reflect Reklaim's commitment to sound financial management, improved liquidity, and increased financial flexibility. By extending the maturity date of its debentures and reducing its debt, Reklaim is well-positioned to pursue growth opportunities and drive long-term success.