SusGlobal Energy Corp announced that it has entered into a security purchase agreement with two investors for private placement of 15% unsecured convertible promissory notes for gross proceeds of $1,500,000 on October 27, 2021. The notes are convertible into common shares of the company at a conversion price equal to the lesser of 70% multiplied by the price per share of the Common Stock at the public offering associated with the Liquidity Event. The notes carry an interest rate of 15% per annum.

The note will mature on July 28, 2022. Each note shall contain a $265,120 original issue discount with principal amount of $1,765,120. The company shall have the option to prepay the Notes at any time prior to the Maturity Date by paying a premium of 20% extra plus the principal, interest, and fees owed as of the prepayment date.

The securities will be issued pursuant to exemption from securities registration requirements of the Securities Act of 1933, as amended, afforded by the provisions of Section 4(a)(2) and/or Rule 506(b) of Regulation D promulgated thereunder by the U.S. Securities and Exchange Commission. The notes are subject to hold period.