Tenet Closes First Tranche of Brokered Private Placement for $1.6 Million
Tenet Fintech Group Inc. has completed the first tranche closing of its offering of securities on a private placement basis for gross proceeds of up to $10,000,000. The company sold 1,610 convertible debenture units (CD units) at a price of $1,000 per CD unit, for an aggregate gross proceeds of $1,610,000. The First Tranche Closing was completed under an agency agreement between the company and Research Capital Corporation, as lead agent and sole bookrunner. The Company intends to close a second and third tranche of the Offering for additional gross proceeds of a minimum of $6,000,000, but there can be no assurances that the Company will be able to close any further tranches of the Offering. Each CD Unit is comprised of a 10.0% unsecured convertible debenture of the company in the principal amount of $1,000 (a “convertible debentures”) and 6,666 common share purchase warrants (the “CD warrants”).
Convertible Debenture Offering and Use of Proceeds
The convertible debentures sold in the First Tranche Closing will mature on February 2, 2027, and are subject to prior conversion in accordance with their terms. From the date of issue until their maturity date, convertible debenture holders may elect to convert, in whole or in part, the face value of the convertible debentures into common shares at a conversion price of $0.15 per common share. At any time prior to the maturity date, if the volume weighted average price of the common shares on the Canadian Securities Exchange meets or exceeds $2.50 for three consecutive trading days, any non-converted and remaining face value of the convertible debentures will be automatically converted into common shares at a conversion price of $0.15 per common share.
Terms, Conversion Options, and Broker Warrant Details
Tenet intends to use the net proceeds from the offering to continue the development of its Cubeler® Business Hub for working capital and general corporate purposes. For its services in connection with the First Tranche Closing of the Offering, the Company has paid to the Agent: (i) a cash commission equal to $112,700, being an amount equal to 7.0% of the gross proceeds of the First Tranche Closing of the Offering; and (ii) 112.7 non-transferable broker warrants (the “CD Broker Warrants”), being such a number of CD Broker Warrants as is equal to 7.0% of the number of CD Units sold pursuant to the Offering.
