TSO3 Inc. (TSX:TOS) announced a private placement of debt financing for gross proceeds of $20,000,000 on August 1, 2018. The company will issue convertible note for gross proceeds of $15,000,000 and a term loan for gross proceeds of $5,000,000. The convertible note issued is a 5 year term non-callable note that is convertible to common shares of the company at a conversion price of $0.82 per common share and bears an interest of 10% per annum, accruing as of the closing date until full repayment, compounded quarterly and payable in cash, at or prior to the maturity date of the convertible note at the option of the company. The term loan is a 5 year term loan callable after 2 years which bears interest at a maximum rate of 12% per annum, which begins accruing immediately, compounds quarterly and is payable in cash, at or prior to the maturity date of the term loan. The company may at its entire discretion decide to reduce the rate of interest payable under the term loan provided it decides, on a quarterly basis, to pay a portion or the entirety of a quarterly payment of interest in cash or in common shares of the company.