Xylitol Canada Inc. (TSXV:XYL) announced a private placement of secured convertible debentures for gross proceeds of CAD 98,000 on July 29, 2016. The debenture carries a coupon of equal to the greater of an annual interest rate of 15% payable per annum, a pro rata royalty equal to 3% of net sales per annum, subject to an annualized combined effective interest of a maximum of 24% and would mature in 4 years. The debenture is convertible at a price per share equal to the lesser of CAD 0.10, and if converted within 12 months from the date issuance of the debentures, the price set by the company, on a per share basis, of an offering of equity securities on or after the date the debentures are issued. The company also issued warrants to purchase 980,000 common shares at an exercise price of CAD 0.08 per share for a period of two year from the date of issue. The transaction involved participation from existing investors Dundee Corporation for CAD 88,000, and Muneeb Yusuf, Director of the company, for CAD 10,000. The company issued 880,000 warrants to Dundee Agricultural Corp. All the securities issued in the transaction will subject to four months hold period from the issuance.

On the same date, the company announced that it has completed its first tranche for the gross proceeds of CAD 98,000.