ReGen III Corp announced a non-brokered private placement of 5,000 Convertible Debenture Units at a price of CAD 1,000 per Unit for gross proceeds of CAD 5,000,000 on October 30, 2023. Each Unit will consist of a CAD 1,000 in principal amount of unsecured convertible debenture and 1,000 common share purchase warrants of the Company. Each Warrant will be exercisable to purchase one common share at a price of CAD 0.55 for a period of 24 months after closing.

The Debentures will have a term of 24 months and will accrue interest at a rate of 14% per annum, payable in arrears on a semi-annual basis, and on the maturity date. After 12 months, the Company may elect to pay outstanding interest in common shares at a price per share equal to the volume weighted average price of the common shares on the TSX Venture Exchange for the 5 trading days prior to the date such interest is due. The Debentures will be convertible at the option of the holder into common shares at a price of CAD 0.55 per common share.

After 4 months, the Company may redeem the Debentures in whole or in part by payment of 115% of the principal amount being redeemed, in cash, together with payment of any accrued but unpaid interest on the principal amount being redeemed, in cash or Interest Shares or a combination thereof. The Placement may be closed in one or more tranches. The Debentures, the Warrants and any underlying common shares will be subject to a four month hold period from closing.