PUDO Announces Private Placement and Shares for Debt Settlement

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TORONTO, Feb. 3, 2025 /CNW/ – PUDO Inc. (“PUDO” or “the Company”) PDO PDPTF announces a private placement and debt settlement consisting of the issuance of up to 4,629,630 Common shares of the Company (the “Issuance”). The Issuance will settle debt related to trade accounts payable (the “Debt Settlement”) of up to $400,000 owed to certain of its creditors (the “Creditors”) in consideration for the issuance of up to 2,692,692 Common shares of the Company (each, a “Settlement Share”). Concurrently the Company will be offering up to 1,666,667 Common shares of the Company (each, an “Offering Share”)through a private placement share offering (the “Private Offering”) to qualified existing and new investors. Both Settlement Shares and Offering Shares (collectively, the “Shares”) will be issued at a deemed price of $0.135 per Share in accordance with the policies of the Canadian Securities Exchange (the “CSE”). All Shares, if issued, will be subject to a four-month and one-day hold period. Closing of the Issuance is subject to certain conditions including the receipt of all necessary regulatory approvals including the approval of the CSE.

Completion of the Issuance by the Company would be in an effort to improve its financial position to support its planned future growth. Elliott Etheredge, Chief Executive Officer, commented, “The Issuance that we announced today is an important step towards solidifying PUDO’s balance sheet. 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. The support and participation in this offering by our Creditors is a testament to the strong growth potential and relationships PUDO has built. The Issuance not only solidifies our financial position, it also gives both existing investors and new investors the ability to participate at the same terms available to the creditors participating in the Issuance.”

Creditors will include but are not limited to insiders of the Company. No new control person of the Company will be created as a result of the Issuance. The Company intends to rely upon certain exemptions from the valuation and security holder approval requirements of Multilateral Instrument 61-101 (“MI 61-101”) and will provide full details in any closing press release.

About PUDO Inc.

PUDO Inc. is North America’s only independent parcel pick-up and drop-off counter network.

PUDO has created a Network of more than 1,200 storefront partners known as PUDOpoint Counters, strategically located very near to where people live, work and play.

PUDO partners with retailers and logistics providers to offer a last-mile pick-up and returns network for ecommerce shoppers that reduces cost, increases convenience and provides package security to the last-mile of package logistics. Visit: www.pudopoint.com.

Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, such as statements regarding estimated revenues from new contracts, increased parcel volume, activation and implementation of PUDO’s technology and possible future expansions of PUDO’s operations. This information is based on current expectations and assumptions of management, including assumptions concerning PUDO’s ability to integrate its new customers into its network and successfully execute on its new and existing contracts. The use of any of the words “anticipate”, “believe”, “expect”, “plan”, “intend”, “can”, “will”, “should”, and similar expressions are intended to identify forward-looking statements. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Risks, uncertainties, and other factors involved with forward-looking information could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Factors that could cause actual results to differ materially from such forward-looking information include, without limitation, uncertainties with respect to service implementation, the economic results of the relationship on the operations of the Company, changes in general economic, market, or business conditions, and those risks set out in the Company’s public documents filed on SEDAR. This press release, in particular the information in respect of estimated revenues, may contain future-oriented financial information or financial outlook within the meaning of applicable securities laws. Such future-oriented financial information or financial outlook has been prepared for the purpose of providing information about management’s reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by law.

SOURCE Pudo Inc.