Petrox Announces Completion of Debenture Private Placement

Executive Summary

• Petrox Resources Corp. completed a private placement of $400,000 aggregate principal amount of zero‑interest convertible debentures that will convert into 8 million common shares after a 10:1 share consolidation.
• The debentures mature in one year and may be prepaid at any time with 30‑day notice; they carry a four‑month hold period post‑conversion.
• Net proceeds are earmarked for working capital and future acquisitions, indicating a material infusion of capital to support growth initiatives.

Key Details

• Offering Size: $400,000 aggregate principal amount of convertible debentures.
• Maturity & Interest: One‑year term; bears no interest.
• Prepayment Rights: Corporation may prepay at any time upon 30 days’ prior written notice, without penalty.
• Share Consolidation: 10:1 consolidation of common shares to be completed; conversion price set at $0.05 per post‑consolidation share.
• Conversion Mechanics: Upon consolidation, debentures automatically convert into 8,000,000 common shares (400,000 ÷ $0.05).
• Compensation Warrants: EMD Financial Inc. received warrants for up to 404,000 common shares at $0.05 per share, exercisable from the consolidation date through November 24 2027; subject to a four‑month hold period.
• Commission Payments:
• Leede Financial Inc.: $3,500 cash
• Haywood Securities Inc.: $2,275 cash
• EMD Financial Inc.: $17,925 cash (plus warrants)
• Use of Proceeds: 100 % allocated to working capital and funding future acquisitions; actual allocation may vary based on operational opportunities.
• Related Party Transaction: Directors Alan Chan, Gerry Peacock, and David Patterson participated in the private placement; approved by unanimous board resolution under MI 61‑101 exemptions.
• Material Change Reporting: No material change report filed 21 days prior because completion timing was uncertain at that time.

Notable Quotes

(No direct quotes were provided in the release.)