Ceylon Graphite Announces Appointment of CFO and Debt Settlement

VANCOUVER, British Columbia, Sept. 12, 2023 (GLOBE NEWSWIRE) -- Ceylon Graphite Corp. (“Ceylon” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased to announce that Michael Kinley has been appointed the Chief Financial Officer of the Company effective immediately.

Mr. Kinley is a Chartered Professional Accountant with extensive public company experience having served as CFO for a number of junior public companies for the past thirty years. Previously, Mr. Kinley was a partner with KPMG.

Mr. Kinley is succeeding Abbey Abdiye in the role of Chief Financial Officer of Ceylon. Ceylon would like to thank Mr. Abdiye for his past contributions and wishes him success in his future endeavours.

Ceylon also announces it has entered into agreements to settle an aggregate of $51,000 of indebtedness owing to a director, officer and former officer of the Company through the issuance of an aggregate of 927,273 common shares of the Company at a deemed issuance price of C$0.055 per common share (the “Debt Settlement”). The issuance of the common shares to settle outstanding indebtedness remains subject to receipt of TSX Venture Exchange approval and upon issuance will be subject to a four-month hold period under applicable securities laws.

The participation by the insiders in the Debt Settlement is considered a “related party transaction” as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 on the basis that the Debt Settlement with related parties constitutes the distribution of securities of the Company for cash consideration of less than $2.5 million. Neither the Company nor, to the knowledge of the Company after reasonable inquiry, the related parties, have knowledge of any material information concerning the Company or its securities that has not been generally disclosed. The debt settlement with each related party was unanimously approved by the Company's independent directors. The Company will file a material change report in connection with the Debt Settlement but likely not before 21 days prior to the closing of the Debt Settlement, which the Company deems reasonable in the circumstances so as to be able to close the Debt Settlement as expeditiously as possible.