dynaCERT Inc. (TSX VENTURE: DYA) (OTCQB: DYFSF) is pleased to report that it has closed the first tranche in the amount of $1,260,000 of a new issue of up to $3,500,000 principal amount of convertible notes (the “Notes”) by way of a non-brokered private placement in Canada to accredited investors. Use of proceeds of the issue of Notes is for general working capital of the Company.
The Notes are issued as of November 17, 2017 at a price of $0.84 maturing September 30, 2020, and, carry a coupon of $0.07, payable annually on September 30 of each year, yielding approximately 8.33%. Each Note is convertible at the option of the holder at any time prior to maturity into one Unit, each Unit consisting of one common share of dynaCERT and one half of a common share purchase warrant (a “Warrant”). Each whole Warrant is exercisable for 2 years from the date of issuance of the Notes at any time after conversion of the Notes for one common share of dynaCERT at an exercise price of $1.00 per common share. If the common shares of dynaCERT trade over the price of $2.00 per share on the TSXV for twenty consecutive trading days, the Company shall have the right to give notice to holders that the conversion feature of the Notes shall expire within 30 days of such notice. The Notes may be transferred subject to applicable Canadian Securities Legislation at the option of the holder. The Notes will not be listed for trading on any stock exchange. The Notes have a hold period of 4 months plus one day from their date of issuance.
The closing of this private placement is subject TSX Venture Exchange final approval.