06:50 AM EST, 02/04/2025 (MT Newswires) -- PUDO (PDO.CN), which gained 85% yesterday, late on Monday said it has launched a private placement and debt settlement for the issuance of up to 4.6 million common shares.

The issuance will settle debt related to trade accounts payable of up to $400,000 owed to creditors in consideration for the issuance of up to 2.7 million common shares.

The company will also be offering up to 1.7 million common shares through a private placement share offering.

Both settlement shares and offering shares will be issued at a deemed price of $0.135 per share. Closing of the issuance is subject to certain conditions, including receipt of regulatory approvals and Canadian Securities Exchange approval.

"The participation by our creditors to settle a large amount of our payables with stock provides us with increased flexibility to use our available capital to expand our customer base and our operational network, especially in the United States," said PUDO CEO Elliott Etheredge.