Nerds On Site Inc. (CSE: NERD) (OTCQB: NOSUF), a Toronto-based provider of cybersecurity, managed IT, and on-site and remote support services for small and medium-sized enterprises, announced on October 20, 2026 that it has entered into a debt settlement agreement with a director of the company. Under the arrangement, the company will issue 2,666,667 common shares at $0.0375 per share, totalling $100,000 in settled obligations. The transaction is classified as a related party transaction and is subject to both a four-month restricted hold and exchange approval.

Key Points

  • Nerds On Site Inc. (CSE: NERD / OTCQB: NOSUF) announced a director debt settlement on October 20, 2026
  • The company will issue 2,666,667 common shares at $0.0375 per share to settle $100,000 in director debt
  • Shares are subject to a four-month restricted hold and remain pending exchange approval
  • Investors may watch for confirmation of exchange approval and any further related party transactions

Share Issuance Terms and Restricted Hold Period

The 2,666,667 common shares will be issued at a price of $0.0375 per share, representing the full $100,000 debt obligation owed to a director of Nerds On Site Inc. The release states that these shares are subject to a four-month restricted hold period, meaning they cannot be freely traded upon issuance. The transaction also remains conditional upon approval from the Canadian Securities Exchange. The immediate share price impact was not clear from available public information.

Related Party Classification and Regulatory Exemptions Relied Upon

Because the shares are being issued directly to a director, the transaction constitutes a related party transaction under applicable securities regulations. The company disclosed it is relying on exemptions set out in sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101, on the basis that the fair market value of the shares being issued is less than 25 per cent of the company's market capitalisation. This exemption allows the company to proceed without obtaining a formal valuation or minority shareholder approval, as the release states.

Nerds On Site's Managed IT and Cybersecurity Operations Across North America

Founded in 1995, Nerds On Site serves businesses and individuals across North America, focusing on cybersecurity, risk management, and remote IT services tailored to small and medium-sized enterprises. The company operates using its proprietary enterprise resource planning system, IAMANERD, which the release states is used to streamline service delivery and support operations. The company's longstanding presence in managed IT and its expanding cybersecurity offerings form the operational backdrop against which this debt settlement transaction has been disclosed to investors and the public markets.