Earthworks Finalizes C$5.1 Million Share-for-Debt Deal With North Bay

An announcement from Earthworks Industries ( (TSE:EWK) ) is now available.

Earthworks Industries has finalized the terms of a debt settlement with North Bay Corporation, confirming that the outstanding debt, originally denominated in U.S. dollars, has been set at C$5,112,564. To extinguish this liability owed by Earthworks and its subsidiary Cortina Integrated Waste Management, the company plans to issue 13,146,057 common shares to North Bay at a deemed price of C$0.39 per share, representing 10% of Earthworks’ issued equity, and has applied to the TSX Venture Exchange for approval of this share-for-debt agreement, a move that will strengthen its balance sheet but dilute existing shareholders.

The most recent analyst rating on (TSE:EWK) stock is a Sell with a C$0.01 price target. To see the full list of analyst forecasts on Earthworks Industries stock, see the TSE:EWK Stock Forecast page.

Spark’s Take on TSE:EWK Stock

According to Spark, TipRanks’ AI Analyst, TSE:EWK is a Underperform.

The score is driven primarily by very weak financial performance (persistent losses, ongoing cash burn, and negative equity). Technicals add further downside risk with price below key moving averages and negative MACD, while valuation offers limited support due to negative earnings and no indicated dividend yield.

To see Spark’s full report on TSE:EWK stock, click here.

More about Earthworks Industries

Earthworks Industries Inc. is a Canadian company listed on the TSX Venture Exchange and OTCQB that operates in the waste management and environmental services sector through its subsidiary Cortina Integrated Waste Management Inc. The firm focuses on developing and operating waste management projects and related infrastructure, serving regional waste disposal and environmental compliance needs.

Average Trading Volume: 225,091

Technical Sentiment Signal: Sell

Current Market Cap: C$1.31M

Learn more about EWK stock on TipRanks’ Stock Analysis page.