Metalo Manufacturing Inc. announced a non-brokered private placement of unsecured convertible debenture for gross proceeds of $400,000 on November 2, 2021. A trust controlled by an unrelated party has fully subscribed to the transaction. The convertible debenture will mature on November 2, 2021 and will carry a fixed interest rate of 12% per annum payable monthly.

The debentures will be convertible at the option of the holder into common shares at $0.55 per share on or prior to the maturity date. At the option of the company, interest accrued will be converted by the company into shares at a conversion price equal to the 20-day trading average price prior to issuance to the volume-weighted average trading price of the common shares of the company for the 20 consecutive trading days prior to conversion. The convertible debenture will not be listed on the CSE, however the shares issuable upon any conversion will be listed and will be subject to a four month hold period from the date of closing.

The company will issue 40,000 share purchase warrants to the investor and each warrant will entitle the holder to purchase one common share of the company at an exercise price of CAD 0.55 ($0.44) for a period of two years. Upon conversion, the shares issued will have a 4 month hold period. The transaction is subject to fulfillment of the requirements of the CSE.