Centr Brands arranges $150,000 private placement

Executive Summary

• Centr Brands Corp. announced a proposed non-brokered private placement of up to 150 unsecured convertible debentures with an aggregate principal amount of $150,000.
• The debentures carry a 10% annual interest rate, mature in 12 months, and are convertible into equity securities at the holder's election.
• Proceeds are intended for working capital and general corporate purposes, with insiders expected to participate in the offering.

Key Details

• Instrument Type: Non-brokered private placement of unsecured convertible debentures.
• Quantity and Amount: Up to 150 debentures at $1,000 each, totaling an aggregate principal amount of $150,000.
• Interest Rate: 10.0% per annum, calculated and payable annually from the date of issuance.
• Maturity: 12 months from the date of issuance.
• Conversion Terms:
  • Convertible in whole or in part at the election of the holder before maturity.
  • Conversion price is the greater of:
    1. The market price (as defined by Canadian Securities Exchange policies).
    2. The offering price of the company's first equity financing following the closing date (subject to CSE approval).
• Use of Proceeds: Net proceeds to be used for working capital and general corporate purposes.
• Conditions: Closing is subject to corporate and regulatory approvals, including CSE approval.
• Hold Periods: Securities are subject to applicable statutory hold periods.
• Tranche Structure: The offering is not subject to a minimum aggregate subscription amount and may close in more than one tranche.
• Insider Participation: Insiders are expected to participate, constituting a related party transaction under Multilateral Instrument 61-101. The transaction is exempt from formal valuation and minority shareholder approval requirements as the value does not exceed 25% of the company's market capitalization.