Hank Payments Corp. announced a non-brokered private placement of 700 secured convertible debenture units at an issue price of CAD 1,000 per unit for gross proceeds of CAD 700,000 on December 16, 2022. Each unit consists of one CAD 1,000 convertible debenture and 3,333 common share purchase warrants. The debentures mature on and become payable on December 16, 2027, and bear interest at a fixed rate of 10% per annum, payable in arrears semiannually in cash on December 31 and June 30 of each year. At any time during the term, a holder of debentures may elect to convert the outstanding net principal amount, or any portion thereof, into common shares at a conversion price of CAD 0.075 per share during the first year and CAD 0.10 per share thereafter. The company may force the conversion of the principal amount of the then outstanding debentures at any time at the conversion price on not less than 5 days' notice if the volume weighted average trading price of the common shares on the TSX Venture Exchange for any 10 consecutive trading day period is equal to or greater than CAD 0.35. Each warrant entitles the holder to purchase one common share of the company at an exercise price of CAD 0.10 per common share until December 16, 2024. All securities issued pursuant to the offering are subject to a statutory hold period ending April 17, 2023. The transaction is subject to approval from the TSX Venture Exchange.

The company received approval from TSX venture exchange. The transaction will include participation from 3 placees.