SHARC Energy Announces $2.0M Convertible Debenture Financing With 25% Greenshoe

Executive Summary

• SHARC International Systems Inc. announced a non‑brokered private placement of unsecured convertible debentures with up to $2,000,000 principal amount and an optional $500,000 greenshoe, for total potential gross proceeds of $2.5 million.
• The 3‑year debentures bear interest at 8.0% per annum, payable on maturity, and are convertible into common shares at a price of $0.125 per share.
• Proceeds will be used for working capital to support the fulfillment of the company’s existing sales order backlog.

Key Details

• Offering Size: Up to $2,000,000 principal; optional 25% over‑allotment (greenshoe) of $500,000, bringing total possible gross proceeds to $2.5 million.
• Interest Rate: 8.0% per annum, calculated annually and paid at maturity.
• Maturity: 3 years from the issuance date.
• Conversion Terms: Convertible into common shares at a fixed conversion price of $0.125 per share at the holder’s option.
• Security: Unsecured debentures; pari passu with all current and future unsecured indebtedness of SHARC Energy.
• Use of Proceeds: Working capital to support shipment and delivery of existing sales order backlog (non‑IFRS measure).
• Finder’s Fee: Company may pay a finder’s fee to eligible arm‑length finders in accordance with applicable securities laws and CSE policies.
• Statutory Hold Period: Securities subject to a hold period of four months and one day from issuance under Canadian securities law.
• U.S. Offering Restrictions: Securities not registered under the U.S. Securities Act; cannot be offered or sold in the United States unless an exemption applies.

Officer Changes (Administrative)

• Appointed Lynn Mueller as Vice President of Business Development.
• Hanspaul Pannu vacated the COO title but will continue as Chief Financial Officer and Corporate Secretary.