Telo Genomics Closes First Tranche of Convertible Debentures Financing

Executive Summary

• Telo Genomics Corp. closed the first tranche of its non‑brokered private placement, issuing secured convertible debentures for gross proceeds of $840,000.
• The debentures bear 15% interest (compounded quarterly), mature on December 15 2026, and are convertible at $0.05 per share; each $0.05 principal also carries a detachable warrant exercisable at $0.08 per share until February 17 2027.
• Proceeds are earmarked for lab trials and general working capital, supporting the company’s diagnostic‑telomere platform development.

Key Details

• Offering Structure
• First tranche of a previously announced private placement.
• Issued non‑transferable secured convertible debentures (“Debentures”) – total gross proceeds $840,000.
• Interest: 15% per annum, compounded quarterly.
• Maturity: December 15 2026; no prepayment right for the company.
• Conversion & Warrants
• Conversion price: $0.05 per share (holder‑election, any time before maturity).
• Detachable warrant issued at a ratio of 1 warrant per $0.05 principal.
• Total warrants issued in this tranche: 16,800,000.
• Warrant exercise price: $0.08 per share, exercisable until February 17 2027.
• Finder’s Compensation
• Cash finder’s fees paid: $58,800.
• Finder’s warrants issued: 1,176,000 (exercise price $0.08, exercisable until February 17 2028).
• Use of Proceeds
• Funding allocated to laboratory trials and general working capital for ongoing R&D and operational needs.
• Regulatory Conditions
• Closing subject to receipt of all necessary approvals from the TSX Venture Exchange.
• Holding Period
• Debentures, warrants, and finder’s warrants (and any securities issuable upon conversion or exercise) are subject to a four‑month‑plus‑one‑day hold period, expiring June 18 2026 under Canadian securities law.

Notable Quotes

No executive quotes were included in the release.