TraceSafe Inc. (CSE:TSF) said it has closed a non-brokered private placement for aggregate principal amount of up to C$306,000 under which it has issued non-transferable, unsecured convertible notes.
The company said the proceeds of the offering will be used for general working capital.
The convertible notes mature 12 months from the placement closing date and bear interest at a rate equal to 10.5% per annum, payable on the last business day of each month, beginning on November 30, 2021, and are convertible into units at a conversion price of C$0.65 per unit.
Each unit consists of one common share of TraceSafe and one common share purchase warrant. Each whole warrant entitles the holder thereof to acquire one common share at an exercise price of $1.25 each for a period of two years from the date of issuance.
If TraceSafe's shares trade on the Canadian Securities Exchange at a price of $2.00 per share or greater for twenty consecutive trading days at any time during the note's term, TraceSafe will have the right (but not the obligation) at any time thereafter to require the holders to convert their convertible notes into units.
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The convertible notes, as well as the underlying units, will be subject to a statutory hold period for a period of four months and one day from the placement closing date.
TraceSafe said will pay eligible finders a fee on the offering equal to 3.0% of the aggregate gross proceeds, subject to the policies of the Canadian Securities Exchange.
The securities being issued have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.
TraceSafe is a full suite of real-time location management services and contact tracing solutions enabled through advanced low-power Bluetooth beacons and enterprise cloud management. The company's leading cloud management solution ensures both user privacy and comprehensive administrative control.
TraceSafe's patented contact tracing bracelet has already been deployed in mission-critical quarantine applications around the world in partnership with leading governments. In addition to their government work, it is developing leading-edge solutions for Enterprise, Healthcare, Education, Government, and large-scale venue management.
Contact the author at jon.hopkins@proactiveinvestors.com