Baltimore Company Had a Long-Term Debt of $1,000,000

Baltimore Company had a long-term debt of $1,000,000.To extinguish this debt the company issued $1,000,000 of fully paid shares to the lender.This transaction would have the following impact on the statement of cash flows:

A) increase cash flow from financing activities by $1,000,000.
B) decrease cash by $1,000,000.
C) increase cash by $1,000,000.
D) nil impact.