Pharmadrug arranges $445,686 debt restructuring

Executive Summary

• Pharmadrug Inc. is issuing $445,686 of secured convertible debentures to replace past‑due convertible debentures and accrued interest.
• Each new debenture matures on October 13 2026 and is convertible into common shares at a price of $0.05 per share (subject to adjustment).
• No interest will accrue unless principal is not repaid at maturity, in which case the debt bears 22% annual interest; issuance is subject to CSE and shareholder approvals.

Key Details

• Principal Amount: $445,686 total, issued to two existing debenture holders.
• Maturity Date: October 13 2026 for each debenture.
• Conversion Price: $0.05 per common share (subject to adjustment).
• Security: Each debenture is secured by a general security agreement covering the company’s assets.
• Interest Terms: No interest payable unless principal remains unpaid at maturity; then interest accrues at 22% per annum.
• Purpose: Replace previously outstanding secured convertible debentures and accrued interest that had matured but remained unpaid.
• Closing Conditions: Subject to customary conditions, including approval by the Canadian Securities Exchange and receipt of required shareholder and regulatory consents.

Notable Quotes

(No direct quotes were provided in the release.)