8-K: Cyber App Solutions Amends Forbearance Agreement, Issues Shares, and Provides Corporate Update

Cyber App Solutions Corp. amended its forbearance agreement, issuing 1.7 million shares to creditors, and provided an update on its helium and CO2 production plans.

Summary

• Cyber App Solutions Corp. has amended its Forbearance and Settlement Agreement with Kips Bay Select LP and Cyber One, Ltd.
• The amendment involves shifting the dates and amounts of certain cash payments due under the original agreement.
• In exchange for these changes, the company issued 850,000 shares of common stock to each of Kips Bay and Cyber One, totaling 1.7 million shares.
• The company also made available an investor presentation and a letter to shareholders, outlining its plans for helium and CO2 production.
• The company aims to begin production by early 2026 with a modular approach, starting with Plant 1, which is expected to produce approximately 50 thousand cubic feet per day of helium and 500 tons per day of CO2.
• The company has engaged MZ Group for investor relations and is planning to uplist to the New York Stock Exchange under the ticker symbol PRTN.
• The company's St. Johns Field is estimated to contain 33 billion cubic feet of recoverable helium and 450+ million tons of CO2.
• The company idled its pilot plant in June 2024 after gathering data and learning about the limitations of pilot-scale operations.

Sentiment

Score: 5

Explanation: The document contains both positive and negative elements. The company is making progress on its production plans and has significant resource potential, but it also faces financial challenges and delays. The need to amend the forbearance agreement and idle the pilot plant are concerning, but the company's plans for future production and uplisting are positive.

Positives

• The company has secured an amendment to its Forbearance Agreement, providing more flexibility in its payment schedule.
• The company is moving forward with a modular production plan, which is expected to be scalable and repeatable.
• The company's St. Johns Field has significant estimated resources of helium and CO2.
• The company is targeting a national exchange uplisting, which could improve visibility and liquidity.
• The company has engaged MZ Group to enhance its investor relations program.
• The company's helium and CO2 production is expected to be free of hydrocarbons, which is a positive for the food and beverage industry.

Negatives

• The company had to amend its Forbearance Agreement, indicating potential financial challenges.
• The company idled its pilot plant in June 2024, suggesting that initial production efforts were not successful.
• The company is reliant on external financing and long-term sales agreements to achieve its production goals.
• The company has a history of defaults under the convertible promissory notes.

Risks

• The company's ability to secure external financing and long-term sales agreements is critical to its success.
• The company's production timeline is subject to potential delays.
• The company faces competition in the helium and CO2 markets.
• The company's stock is currently traded on the OTC Pink Open Markets, which is considered a higher risk market.
• The company's forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

Future Outlook

The company expects to begin production by early 2026 and become a leading North American producer of helium and beverage grade CO2. They are focused on securing external financing and long-term sales agreements to support their modular production plan. The company also plans to uplist to the New York Stock Exchange.

Management Comments

• Steven Looper, CEO, stated that 2024 has been a year of foundation building and that the company's development plan positions it for initial production by early 2026.
• The CEO also mentioned that the company is working to secure external financing and long-term sales agreements.
• The company is confident in its path ahead and looks forward to additional operational momentum in the months to come.

Industry Context

The announcement comes amid a global helium supply shortage and a growing demand for beverage-grade CO2, creating a favorable market for new producers. The company's focus on sustainable production and its strategic location in North America position it well to capitalize on these trends. The company is also addressing the supply chain issues that have caused shortages in the CO2 market.

Comparison to Industry Standards

• The company's estimated helium resources of 33 billion cubic feet are significant compared to other players in the industry.
• The company's modular production approach is similar to other companies in the oil and gas industry that are focused on scalability and cost-effectiveness.
• The company's focus on fixed-price offtake agreements is a common strategy in the industrial gas market to secure stable revenue streams.
• The company's plan to uplist to the New York Stock Exchange is a common strategy for companies seeking to increase their visibility and access to capital.

Management Changes

Stakeholder Impact

• Shareholders will be impacted by the issuance of new shares and the company's progress towards production.
• Employees will be impacted by the company's operational and corporate updates.
• Customers will be impacted by the company's plans to produce helium and CO2.
• Creditors will be impacted by the amended Forbearance Agreement and the issuance of shares.

Next Steps

• The company will continue to work on securing external financing and long-term sales agreements.
• The company will contract for the supply of its first modular plant.
• The company will work towards uplisting to the New York Stock Exchange.
• The company will continue to develop its investor relations and corporate communications program.

Key Dates

Keywords

helium, CO2, forbearance agreement, modular production, St. Johns Field, investor relations, uplisting, industrial gases, resource development, capital expenditure