Looking Glass Labs has announced a debt settlement agreement with an arm's-length creditor which will see $367,500 of the company’s debt eliminated through the issue of 7.35 million Looking Glass common shares.
The company said it will need new sources of working capital to continue operations and plans to actively secure funding, including possible equity and debt financing options.
At the same time, it will focus on careful cost control to sustain operations and, if necessary, curtail spending.
“As a result of challenging current capital market conditions and the issuer's business market sector, comprising blockchain technology, metaverse development and non-fungible token product offerings, experiencing economic challenges, the issuer has not been able to secure equity or debt funding for working capital,” Looking Glass Labs said in a statement.
It said its board of directors has determined that the company is “in serious financial difficulty, that the debt settlement is designed to improve the issuer's financial position and that the terms of the debt settlement are reasonable in the issuer's circumstances”.
It noted that financings are dependent on market conditions and that there can be no assurance it will be able to raise funds in the future.