SECURED DEBENTURESSomeone please explain to me why such high interest?
In February 2022, the Company issued senior secured debentures in the aggregate principal amount of $1,640,000, of which $520,000 was provided by Reklaim Ltd. CEO, Mr. Neil Sweeney. (the “February 2022 Debentures”), bearing interest at 12% per annum, payable every six months and maturing on February 24, 2025. As consideration for secured debentures, the Company issued 1,366,666 bonus shares (Note 11) with a fair value of $328,000 based on the shares trading price, of which $104,000 was issued to Mr. Sweeney. The secured debentures have an effective interest rate of 21.9% per annum.