DeepSpatial Inc. announced a non-brokered private placement of unsecured convertible debentures on October 27, 2022. The debentures will bear interest at 10% per annum, from the date of issuance, payable upon the earlier of the maturity date or the date of any conversion. The debentures will mature on the date that is two years from the date of issuance. The outstanding debentures may convert the principal into units of the company at a conversion price of CAD 0.15 per unit, with each unit consisting of one common share in the capital of the company and one-half of one share purchase warrant, with each warrant exercisable into one share at a price of CAD 0.30 per warrant share for a period of two years from the date of the closing. The company may cause forced conversion if share of the company trading price of at least CAD 0.30 for ten consecutive trading days. All securities issued in connection with the first tranche will be subject to a hold period expiring February 27, 2023. The company expects to close a second tranche of the financing in a timely manner.

On the same date, the company received CAD 572,500 in its first tranche closing.