Tenet Fintech Group Inc. announced a non-brokered private placement to issue 20,000 units at an issue price of CAD 1,000 per unit for gross proceeds of up to CAD 20,000,000 on June 29, 2023.

On the same date, the company issued 2,598 units at an issue price of CAD 1,000 per unit for gross proceeds of approximately CAD 2,598,000 as its first tranche. Each unit in the first tranche closing is comprised of one 10% non-secured convertible debenture in the principal amount of CAD 1,000 and 4,000 warrants to purchase common shares. The convertible debentures will mature 36 months from the date of issuance and, subject to prior conversion in accordance with their terms, will be repaid in cash at the maturity date. Each warrant will be exercisable to acquire one common share at an exercise price of CAD 0.50 per warrant share for a period of 24 months from the date of issuance thereof. In addition, the company has entered into subscription agreements with certain investors for the sale of an additional 8,000 units for gross proceeds of an additional approximately CAD 8,000,000 as a second tranche closing and expects to receive the funds associated with the second tranche closing by August 18, 2023. Convertible debenture will be converted into common shares at a conversion price of CAD 0.25 per common share. The convertible debentures shall bear interest at a rate of 10% per annum from the date of issue, payable monthly in arrears in cash. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months. Finders will receive a cash finder's fee equal to 5% of the gross proceeds of the financing and a warrant finder's fee equal to a number of warrants representing 5% of the gross proceeds. Each finder warrant entitles the holder to purchase one common share for a period of 24 months following the date of its issuance, at an exercise price of CAD 0.50. The convertible debentures, the securities to be issued underlying the convertible debenture, the warrants and the finder warrants and any underlying securities are subject to a hold period of four months and one day from the closing date of the financing. The first tranche closing, any additional closings and the financing are all subject to the approval of the Canadian Securities Exchange and are subject to compliance with applicable regulatory requirements.