SRx Health announces cancellation of $18.8M shares of capital stock

SRx Health (SRXH) Solutions announced that further to the previously disclosed grant of an Initial Order under the federal Companies’ Creditors Arrangement Act by the Ontario Superior Court of Justice to the Company’s Canadian subsidiary SRx Health Solutions and certain of its subsidiaries, it has canceled approximately 18.8 million shares of its capital stock. The cancellation was made pursuant to a Settlement, Share Forfeiture and Mutual Release Agreement between the Company and certain of the founders and former officers of SRx Canada, along with their respective affiliates and other related parties. Pursuant to the Settlement Agreement, the Forfeiting Stockholders have forfeited for cancellation approximately 18.8 million shares of the capital stock of SRx Canada which are exchangeable for shares of the Company’s common stock, par value $0.0001 per share, on a one-for-one basis. The Forfeited Shares were originally issued pursuant to the terms of the previously announced arrangement transaction pursuant to which the Company acquired SRx Canada. In consideration of the Forfeited Shares, the Company has agreed to release the Forfeiting Stockholders from certain claims by the Company. The Forfeited Shares represent approximately 60% of the aggregate number of shares of Common Stock and Exchangeable Shares issued and outstanding immediately prior to the execution of the Settlement Agreement . The Company intends to explore all available legal remedies against former officers of SRx Canada who are not parties to the Settlement Agreement in order to recover any lost value on behalf of its stockholders.