Zonetail Announces Amendment of Debentures Terms and Extension Period of Warrants

Executive Summary

• Zonetail Inc. amended the terms of its non‑brokered private placement of Series A 20% secured notes, extending maturity to April 2027 and allowing deferral of interest for the first three years.
• The company closed $203,800 of notes, with insiders subscribing for $115,500 (57% of the offering).
• 4,076,000 warrants were issued at an exercise price of $0.05 per share; the expiry has been extended by one year to April 2027.

Key Details

• Closed proceeds: $203,800 total; insider participation amounted to $115,500 (57% of the offering).
• Notes terms amendment:
• Interest payable in cash on each anniversary can be deferred for years 1‑3 (“Deferred Amount”).
• Deferred interest will accrue at 20% per annum.
• Maturity extended from original date to April 2027.
• Warrants: 4,076,000 warrants issued; each convertible into one common share at $0.05 exercise price for one year from closing.
• Warrant expiry extension: Application filed with TSX Venture Exchange to extend expiry an additional year to April 2027.
• Related‑party transaction: Insider participation qualifies as a related‑party transaction under TSXV Policy 5.9 and MI 61‑101; the company is relying on exemptions from valuation and minority‑shareholder approval requirements.
• All other terms of the notes and warrants remain unchanged.

Notable Quotes

(No executive quotes were provided in the release.)