Canadian Premium Sand closes $1M debenture offering

Executive Summary

• Canadian Premium Sand Inc. completed a $1 million non-brokered private placement of secured convertible debentures to fund general working capital and strategic initiatives.
• The debentures carry a 12% quarterly compounded interest rate, mature on February 26, 2027, and convert at 15 cents per common share.
• Concurrently, the company amended existing outstanding debentures to align their conversion price with the new offering, and insiders/significant shareholders subscribed for $328,000 in a related-party transaction.

Key Details

• Gross Proceeds: Approximately $1 million
• Instrument Structure: Secured convertible debentures
• Interest Rate: 12% per annum, compounded quarterly, payable in arrears at maturity
• Maturity Date: February 26, 2027
• Conversion Price: 15 cents per common share (holder's option, subject to adjustment)
• Accrued Interest Conversion: May be converted into common shares at the then-prevailing market price (subject to TSX-V approval)
• Redemption Provision: Company may redeem if daily VWAP is $0.24 or more for 30 consecutive trading days; redemption via cash or shares at $0.15/share with 30 days notice
• Change of Control: Requires full cash repayment of principal + accrued interest + 3% premium, unless holder elects conversion
• Existing Debenture Amendment: Conversion price for $1,975,000 aggregate principal of outstanding debentures reduced from $0.75 to $0.15 per share to match new terms
• Related Party Subscriptions: Directors (Lowell Jackson, John Assman, Glenn Leroux) and significant shareholder (Paramount Resources Ltd.) subscribed for $328,000 total
• Regulatory Status: Exempt from MI 61-101 minority shareholder/valuation requirements; subject to final TSX-V acceptance
• Statutory Hold: Expires August 10, 2026
• Use of Proceeds: General working capital and advancement of strategic initiatives