Direct Comm arranges $1.5M (U.S.) debenture offering
2022-08-10 20:10 ET - News Release
Mr. Chris Bursey reports
DCS ANNOUNCES USD $1.5 MILLION OF CONVERTIBLE DEBENTURE FINANCING
Direct Communication Solutions Inc. has arranged an offering of unsecured convertible debentures raising up to $1.5-million (U.S.) ($1.92-million). Pursuant to the terms of the debentures, the subscribers may convert all or part of the principal amount outstanding under the debentures into shares of common stock of the company.
The debentures are convertible into shares of common stock of the company at the higher of $1.19 (U.S.) ( $1.52 CAD ) or a price equal to the price of the shares of the next financing carried out before the second anniversary of the closing date less a 25-per-cent discount.
The debentures have a maturity date of the second anniversary of the closing date and bear an interest rate of 10 per cent per annum, payable semi-annually.
Concurrent with the offering of the debentures, the company shall grant and issue up to 750,000 share purchase warrants on the basis of one-half of one share purchase warrant for each $1.00 (U.S.) of debenture principal under subscription, where a whole warrant shall be exercisable at 86 U.S. cents ($1.10) per share of common stock for a two-year exercise term.
The debentures are unsecured and the use of proceeds from the offering shall be used for working capital and general corporate purposes.
The company may pay finders' fees to eligible finders in cash or warrants or a combination of both.
The conversion rate is $1 (U.S.) to $1.28 (Canadian).
About Direct Communication Services Inc.
Direct Communication Services is a technology solutions integrator focusing on connecting the Internet of Things. It provides real solutions that solve real problems. Its software applications and scalable cloud services collect and assess business-critical data from all types of assets. The company is headquartered in San Diego, Calif., and is publicly traded on the OTCQX (DCSX), Canadian Securities Exchange (DCSI) and Frankfurt Stock Exc