Yorkton Equity Group Inc. announced a non-brokered private placement of unsecured convertible debentures for gross proceeds of up to CAD 2,000,000 on October 21, 2022. The debentures will be issued at par with an issue price of CAD 1,000 with an interest rate equal to the higher of 8% per annum payable annually to the convertible debenture holders only in cash no later than 30 days from the anniversary date of the closing date of the offering to the maturity date. Each convertible debenture will mature on the date that is five years from the date of issuance of the convertible debenture.

The principal amount of each convertible debenture may, at the option of the convertible debenture holder, be convertible, in whole or in part during the term, into common shares at a conversion price of CAD 0.30 per common share, after which such principal amount of the convertible debenture will be extinguished. The company, for a period of 30 calendar days following the third and fourth anniversaries after the closing date, will also have the right, but not the obligation, to redeem the principal amount and any unpaid interest of the convertible debenture in cash, without penalty, at any time prior to the date of maturity by providing a 30-calendar-day notice period to the convertible debenture holder by way of a written notice or a press release duly disseminated. Within ten business days after receipt of the Notice, the holder of the debenture, at its sole discretion, may then request for a conversion.

The convertible debentures and any common shares issuable upon conversion will be subject to a statutory hold period lasting four months and one day following the closing date. The offering may be completed in multiple tranches and is subject to customary closing conditions, including conditional approval from the Exchange.