SHARC Energy Closes First Tranche of Debenture

Executive Summary

• SHARC International Systems Inc. closed the first tranche of a non‑brokered private placement, issuing unsecured convertible debentures with an aggregate principal amount of $300,000.
• The debentures bear interest at 8.0% per annum, mature in 3 years, and are convertible into common shares at $0.125 per share (subject to a 10 % blocker provision).
• Net proceeds will be used for working capital and general corporate purposes to support the company’s production, shipment, and delivery of its sales order backlog.

Key Details

• Offering Size: $300,000 principal amount of unsecured convertible debentures.
• Interest Rate: 8.0% per annum, calculated annually and payable on maturity.
• Maturity: 3 years from the issue date.
• Conversion Price: $0.125 per common share; conversion at holder’s option.
• Blocker Provision: Conversion prohibited if it would cause the holder to own ≥10 % of outstanding common shares.
• Finder Compensation:
• Cash fee of $24,000 paid to an eligible non‑arm’s length finder.
• Issuance of 192,000 compensation warrants, each exercisable at $0.125 per share for a three‑year period.
• Use of Proceeds: Working capital and general corporate purposes; support fulfillment of the company’s sales order backlog.
• Listing Status: Debentures and compensation warrants will not be listed on any stock exchange.
• Statutory Hold Period: All securities issued are subject to a hold period of four months plus one day from issuance.

Notable Quotes

• “The net proceeds from this offering will provide us with the necessary liquidity to continue fulfilling our production and delivery commitments while supporting ongoing growth initiatives,” – Fred Andriano, Chairman (on behalf of the Board).