Sharc International Systems closes $1.57M placement

Executive Summary

• Sharc International Systems Inc. closed a non-brokered private placement of unsecured convertible debentures with a principal amount of $1.57 million.
• The debentures carry an 8.0% annual interest rate, mature in three years, and are convertible into common shares at $0.125 per share, subject to a 10% blocker provision.
• The company incurred significant finder's fees, including a cash payment of $125,600 and the issuance of 1,004,800 compensation warrants, with net proceeds designated for working capital and general corporate purposes.

Key Details

• Transaction Structure: Non-brokered private placement of unsecured convertible debentures.
• Principal Amount: $1.57 million.
• Interest Rate: 8.0% per annum, calculated annually and paid on maturity.
• Maturity: Three years following the date of issuance.
• Conversion Terms: Convertible into common shares at a price of 12.5 cents per share at the option of the holder.
• Blocker Provision: A 10.0% blocker provision restricts conversion if the exercise would result in the securityholder holding 10.0% or more of the issued and outstanding common shares.
• Finder's Compensation:
  • Cash fee: $125,600 paid to an eligible non-arm's-length finder.
  • Warrants: 1,004,800 compensation warrants issued to the finder.
  • Warrant Terms: Each warrant entitles the holder to purchase one common share at an exercise price of 12.5 cents for a period of three years following issuance.
• Use of Proceeds: Working capital and general corporate purposes to support production, shipment, and delivery of Sharc and Piranha Wet systems.
• Listing Status: Debentures and compensation warrants will not be listed or posted for trading on any stock exchange.
• Hold Period: All securities issued are subject to a statutory hold period of four months plus one day from the date of issuance.
• Ranking: Debentures are unsecured and rank pari passu in right of payment of principal and interest with all current and future unsecured indebtedness of the company.

Notable Quotes

• None provided in the text.