Reklaim closes $500,000 debenture unit financing

Executive Summary

• Reklaim Ltd. completed a non-brokered private placement of convertible debenture units totaling $500,000 to accredited investors.
• Proceeds are designated to support the expansion of Reklaim Protect, the company's subscription-based personal data monitoring and removal platform.
• The financing includes senior secured convertible debentures with a 12% interest rate, convertible at 10.5 cents per share, accompanied by warrants exercisable at 14 cents.

Key Details

• Total Proceeds: $500,000
• Instrument Type: Non-brokered private placement of convertible debenture units.
• Use of Proceeds: Continued expansion of Reklaim Protect (subscription platform for monitoring, removing, and safeguarding personal data).
• Debenture Terms:
  • Interest Rate: 12.0% per annum.
  • Payment Frequency: Quarterly, payable in cash or shares at the holder's election.
  • Maturity: 36 months from closing.
  • Conversion Price: 10.5 cents per share.
• Warrant Terms:
  • Quantity: 2,380,952 warrants issued (equal to 50% of the common shares issuable upon conversion of the principal).
  • Exercise Price: 14 cents per share.
  • Term: 36 months from issuance.
  • Forced Conversion: Reklaim retains the right to force conversion if the share price trades at a VWAP of 20 cents or higher for 10 consecutive trading days on the TSX Venture Exchange.
  • Early Repayment Penalty: If principal is repaid within the first year, half of the warrants expire immediately, and the remaining half expire one year after closing.
• Fees: No commissions or finders' fees were paid.
• Regulatory Status: Subject to final approval by the TSX Venture Exchange; securities subject to a four-month hold period plus one day.