Nerds On Site Inc. (CSE: NERD) (OTCQB: NOSUF) has announced a debt settlement agreement with one of its directors, involving the issuance of 2,666,667 common shares at $0.0375 per share to retire $100,000 in debt. The transaction is classified as a related party deal given the counterparty's position on the board. The issuance remains subject to a four-month restricted hold period and exchange approval, making regulatory sign-off a near-term milestone for investors to monitor.

Key Points

  • Nerds On Site Inc. (CSE: NERD / OTCQB: NOSUF) announced the debt settlement on October 20, 2026.
  • The company will issue 2,666,667 common shares at $0.0375 each to settle $100,000 owed to a director.
  • Shares are subject to a four-month restricted hold and pending exchange approval.
  • Investors should watch for confirmation of exchange approval to determine when the transaction is fully completed.

Director Debt Settled Through NERD Share Issuance

Nerds On Site has entered into a debt settlement agreement with a director of the company, under which 2,666,667 common shares will be issued at a price of $0.0375 per share to extinguish $100,000 in outstanding debt. The release states the transaction is subject to a four-month restricted hold on the newly issued shares and must receive exchange approval before it can be finalised. The immediate share price impact was not clear from available public information.

Related Party Exemptions Applied Under MI 61-101

Because the shares are being issued directly to a sitting director, the transaction constitutes a related party transaction under applicable Canadian securities rules. The company states it is relying on exemptions under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101, citing that the fair market value of the shares being issued is less than 25% of the company's market capitalisation. This exemption allows the company to proceed without a formal valuation or minority shareholder approval, the disclosure indicates.

Cybersecurity and Managed IT Provider Reduces Director Liability

Founded in 1995, Nerds On Site provides managed IT and cybersecurity services to small and medium-sized enterprises across North America. The company operates using its proprietary ERP system, IAMANERD, to support service delivery across its client base. By settling this director debt through a share issuance rather than a cash payment, the company preserves working capital — a consideration that may be relevant to investors tracking the financial position of smaller-cap technology service providers listed on the Canadian Securities Exchange.