Telo Genomics increases private placement to $1.6M

Executive Summary

• Telo Genomics Corp. has upsized its previously announced non-brokered private placement of non-transferable secured convertible debentures from a maximum of $1.2 million to $1.6 million.
• The company has already closed an initial tranche raising $840,000 and intends to close one or two additional tranches for up to $760,000, with the final tranche expected to close by March 6, 2026.
• The offering consists of debentures bearing 15% annual interest, convertible into common shares at $0.05 per share, accompanied by detachable warrants exercisable at $0.08 per share.

Key Details

• Offering Structure: Non-brokered private placement of non-transferable secured convertible debentures.
• Upsized Amount: Increased from up to $1.2 million to up to $1.6 million.
• Interest Rate: 15% per annum, compounded quarterly.
• Maturity Date: December 15, 2026.
• Conversion Terms: Holders may elect to convert principal into common shares at a conversion price of $0.05 per share at any time before maturity. The company has no right to prepay prior to maturity.
• Warrant Terms: For every $100,000 of debentures issued, the company issues 2,000,000 detachable warrants. Each warrant is exercisable for one common share at an exercise price of $0.08 per share for a period of 12 months from the closing date.
• Initial Tranche Closed: Aggregate gross proceeds of $840,000, consisting of debentures and 16.8 million warrants.
• Remaining Tranches: Intends to close one or two additional tranches for aggregate gross proceeds of up to $760,000.
• Closing Schedule: Final tranche expected to close on or before March 6, 2026.
• Use of Proceeds: Working capital and general corporate purposes.
• Regulatory Status: Subject to receipt of necessary regulatory approvals, including TSX Venture Exchange approval.
• Hold Period: All securities subject to a statutory hold period of four months and one day from issuance.
• Fees: The company may pay finders' fees in connection with the upsized offering.