- Tenet Fintech (PKK) has signed an engagement letter with Research Capital Corporation (RCC) for a private placement offering
- The offering will be for a maximum of 2,500 units of non-secured convertible debentures for gross proceeds of maximum of $25,000,000
- RCC will act as lead agent and sole bookrunner on a best-efforts basis for the offering
- Tenet Fintech is the parent company of a group of innovative financial technology and artificial intelligence (AI) companies
- Tenet Fintech Group Inc. (PKK) opened trading at C$0.66 per share
Tenet Fintech (PKK) has signed an engagement letter with Research Capital Corporation (RCC) for a private placement offering.
The offering will be for a minimum of 1,000 units and a maximum of 2,500 units of non-secured convertible debentures for gross proceeds of a minimum of $10,000,000 and a maximum of $25,000,000.
RCC will act as lead agent and sole bookrunner on a best-efforts basis for the offering. RCC will also have an over-allotment option. It can offer up to an additional 15 per cent of units or up to an additional 375 units.
Each unit comprises of $10,000, face value, of non-secured convertible debentures and 10,000 warrants. Each warrant entitles the holder to purchase common shares at $2.00 per share any time prior to the expiry of warrants.
The debentures will mature and the warrants will expire in twenty-four months from the date of their issuance. The debentures will bear interest at 10 per cent per annum, payable in cash. Tenet will pay interest monthly, starting on the last day of the first month following the date of issuance of the debentures.
From the date of issue until the Expiry Date, investors can also elect to convert the face value of the debentures into common shares at the lower of $1.00 per common share or the price per unit or per common share sold by Tenet.
The company will pay commission consisting of 7 per cent cash and 7 per cent Agent Warrants to RCC in connection to this offering. Each Agent Warrant will be exercisable into one common share and one common share purchase warrant exercisable at $2.00 for 24 months following the closing of the offering.
All securities issued will be subject to a statutory hold period of four months. The company expects closing of the offering on or about April 7, 2023. The offering may close in multiple rounds until the maximum gross amount of $25,000,000 is reached.
Tenet expects to use the net proceeds for working capital related to its Canadian operations. It may also allocate part of the proceeds to growing its Chinese operations. The offering aims to provide Tenet with the short-term capital needs to execute its business plan.
About Tenet Fintech Group
Tenet Fintech is the parent company of a group of innovative financial technology and artificial intelligence (AI) companies. Its subsidiaries provide various analytics and AI-based services to businesses and financial institutions through the Business Hub.
Tenet Fintech Group Inc. (PKK) Stock opened trading at C$0.66 per share.
