Forward Water Technologies Corp. Announces Amendments to Convertible Debenture Financing Terms

Executive Summary

• Forward Water Technologies Corp. announced amendments to the terms of its previously disclosed non-brokered private placement of unsecured convertible debentures, increasing the total proceeds to up to $750,000.
• The company will issue "Debenture Units" priced at $1,000 each, consisting of $1,000 principal in convertible debentures and 5,000 common share purchase warrants.
• Insider participation is expected to constitute at least 25% of the offering, classified as a related party transaction under MI 61-101, with exemptions sought for formal valuation and minority approval.

Key Details

• Transaction Structure: Non-brokered private placement of unsecured convertible debentures.
• Total Proceeds: Up to $750,000.
• Unit Composition: Each unit is priced at $1,000 and consists of:
  • $1,000 principal amount of Convertible Debentures.
  • 5,000 common share purchase warrants.
• Warrant Terms:
  • Entitle holder to acquire one common share.
  • Valid for 36 months from issuance.
  • Exercise price: $0.07 per share if exercised within the first year; $0.10 per share thereafter.
• Debenture Terms:
  • Maturity: 36 months from issuance.
  • Interest Rate: 14% per annum, payable annually.
  • Conversion Price: $0.07 per share during the first year; $0.10 per share thereafter.
  • Accrued Interest: Company may apply to TSXV to convert accrued interest into common shares at the prevailing market price.
  • Pre-payment Right: Company has the right to prepay the debentures at any time after 12 months from issuance.
• Insider Participation:
  • Insiders intend to subscribe for at least 25% of the offering.
  • Transaction qualifies as a "related party transaction" under Multilateral Instrument 61-101.
  • Company relies on exemptions from formal valuation and minority approval requirements, based on fair market value of insider participation not exceeding 25% of market capitalization.
• Regulatory & Closing Conditions:
  • Subject to corporate and regulatory approvals, including TSX Venture Exchange approval.
  • Conducted in reliance on prospectus exemptions.
  • Securities subject to a statutory hold period of four months plus one day.
  • Finders' fees may be paid in accordance with TSXV policies.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.