Business
Zonetail Announces First Closing of Private Placement of Debentures
Toronto, Ontario--(Newsfile Corp. - April 25, 2023) - Zonetail Inc. (TSXV: ZONE) (OTCQB: ZTLLF) (...
About this update from Zonetail, Inc.
[{"type":"text","content":"Zonetail Announces First Closing of Private Placement of DebenturesToronto, Ontario--(Newsfile Corp. - April 25, 2023) - Zonetail Inc. (TSXV: ZONE) (OTCQB: ZTLLF) (\"Zonetail\" or the \"Company\") is pleased to announce the closing of the first tranche of non-brokered private placement of up to $1,000,000 in Series A 20% secured notes (\"Notes\") of the Company at a purchase price of $1,000 per Note (the \"Offering\"). The Company closed $203,800 of the Notes with insiders subscribing for $115,500 or 57% of the Offering. No new insiders were created as a result of the Offering.The principal amount of each Note may be converted into common shares of the Company (the \"Shares\"), with each Share priced at $0.05 per Share for the first year from closing and $0.10 per Share thereafter (the \"Conversion Price\"). Conversion termsi) at the option of the holder at any time. ii) at the option of the Company, at the Conversion Price if and when the closing price of the Common Shares on the TSX Venture Exchange or any other exchange or market on which the Common Shares may be traded on 10 consecutive or non-consecutive trading days equals or exceeds $0.125 per share. The Company currently has issued and outstanding 209,882,884 common shares; if converted, on a fully diluted basis, the securities issuable on conversion would represent 4,076,000 shares or 1.91%.As part of the offering the Company issued 4,076,000 warrants (the \"Warrants\") with each Warrant shall be exercisable into one (1) common share of the Company for one year from the closing date at an exercise price of $0.05 warrant. The proceeds of the Offering, net of expenses, will be used for the Company's core business operations, including the development of the Company's sales channel, technology development and working capital. The Company has also paid eligible finders (\"Finders\"), all of whom are at arm's length to the Company and its insiders within the meaning of Policy 5.1 of the TSX Venture Exchange (the \"Exchange\"), cash compensation as finders fees of $1,698 and has issued an aggregate of 33,960 finders warrants of the Company (\"Finders Warrants\"). Each Finder Warrant entitles the holder to purchase one Share of the Company at an exercise price of $0.05, for a period of twelve (12) months from the closing date of the Offering. All securities issuable pursuant t...