Telo Genomics closes first tranche for $840,000

Executive Summary

• Telo Genomics Corp. has closed the first tranche of its previously announced non-brokered private placement of non-transferable secured convertible debentures.
• The company raised gross proceeds of $840,000 from the issuance of debentures.
• The financing includes convertible debentures maturing in December 2026, detachable warrants, and finders' warrants, with proceeds allocated to lab trials and general working capital.

Key Details

• Transaction Structure: Non-brokered private placement of non-transferable secured convertible debentures.
• Gross Proceeds: $840,000.
• Debenture Terms:
  • Interest Rate: 15% per annum, compounded quarterly.
  • Maturity Date: December 15, 2026.
  • Conversion Price: $0.05 per common share.
  • Prepayment: The company has no right to prepay the debentures prior to maturity.
• Warrants Issued to Investors:
  • Ratio: One transferable detachable warrant for every $0.05 of principal amount.
  • Total Warrants Issued: 16.8 million warrants.
  • Exercise Price: $0.08 per share.
  • Expiration Date: February 17, 2027.
• Finders' Fees and Warrants:
  • Cash Fees Paid: $58,800.
  • Finders' Warrants Issued: 1,176,000 warrants.
  • Finders' Warrant Exercise Price: $0.08 per share.
  • Finders' Warrant Expiration Date: February 17, 2028.
• Use of Proceeds: Lab trials and general working capital.
• Regulatory Conditions: Subject to receipt of all necessary approvals from the TSX Venture Exchange.
• Hold Period: A four-month-and-one-day hold period applies to the debentures, warrants, and finders' warrants, expiring on June 18, 2026.

Notable Quotes

• None provided in the text.