ARHT Media Inc. announced a private placement that it has issued Series A secured subordinated debentures for an aggregate principal amount of CAD 250,000 on February 20, 2024. The Debentures mature on August 3, 2025 and carry an annual interest rate of 15%, accrued and payable semi-annually on each of June 30 and December 31, in cash or shares at the option of the company and subject to the approval of the TSX Venture Exchange. Subject to certain conditions, the company will have the right to prepay any or part of the debentures at any time prior to the maturity date by paying the principal amount.

The principal amount of the debentures is not convertible into common shares or any other securities of the company. The debentures are secured by substantially all of ARHT's assets pursuant to an amended and restated general security agreement effective as of the February 16, 2024, in favor of the collateral agent on behalf of the existing debenture holders. The Debentures are subject to a four-month statutory hold period commencing on the date of their issuance.