BlueRush Inc. (TSX-V:BTV) has said it intends to complete a proposed non-brokered private placement of up to 5,000 convertible debenture units at a price of $1,000 each for aggregate gross proceeds of up to $5 million.
The company said each convertible debenture unit will consist of a $1,000 principal amount on a 10.0% unsecured convertible debenture and 12,500 common share purchase warrants.
Each convertible debenture will mature 48 months from the closing of the offering and will be convertible into common shares at $0.04 per share. Each warrant entitles the holder to acquire one additional share at a price of $0.075 per until 48 months from the closing of the offering.
Bluerush said it intends to use the net proceeds from the offering for general working capital.
READ: Bluerush announces extension to private placing
The company said it may force the conversion of the debenture if the volume-weighted average price of its shares on the TSX Venture Exchange is greater than $0.15 for twenty consecutive trading days or if the company is uplisted in the US and the company is current with its securities and TSXV filing requirements.
Interest on the principal amount of the debentures will be paid on June 30 of each year commencing on June 30, 2023. In addition, the principal amount of the debentures may be redeemed by the company on payment of a 25% prepayment penalty and subject to a maximum per annum interest return of 24%.
Subscribers may subscribe in Canadian dollars, the company added. In the event, the entire offering is completed in Canadian dollars the offering would be at C$0.05 per convertible debenture unit, for aggregate gross proceeds of up to C$6,289,500 with each convertible debenture convertible at C$0.05 and each whole warrant exercisable at C$0.094 per share.
Bluerush develops and markets IndiVideo, a disruptive, award-winning interactive personalized video platform that drives return on investment throughout the customer lifecycle, from increased conversions to more engaging statements and customer care.
Contact the author at jon.hopkins@proactiveinvestors.com