Zonetail Announces Private Placement Financing to Raise up to $1,000,000

About this update from Zonetail, Inc.

[{"type":"text","content":"Zonetail Announces Private Placement Financing to Raise up to $1,000,000Toronto, Ontario--(Newsfile Corp. - March 13, 2023) - Zonetail Inc. (TSXV: ZONE) (OTCQB: ZTLLF) (\"Zonetail\" or the \"Company\") is pleased to announce a proposed 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 proceeds from the Offering will be used for sales and marketing activities, as well as general working capital purposes. The Notes will be granted a security interest ranking equivalent to other notes in this offering and ranking ahead of all unsecured debt of the Corporation but subordinate to its indebtedness from time to time to its commercial lender, to the extent such indebtedness is secured by the property and assets of the Company, will be repayable two (2) years from the closing of the Offering, and have other customary terms and conditions including customary events of default. Interest will accrue on the principal amount of the Notes at 20.00% per annum, payable annually in arrears. The maturity date for repayment of the Notes may be extended, at the option of the Company, for up to an additional 12 months, on payment of additional interest at the rate of 2% for such extension period. Interest, including additional interest if any due during the extension period, will be payable annually in arrears, and in cash or common shares, at the election of the Company. The Corporation will pay on account of accrued and unpaid interest (to the extent payable in cash) first and payments on account of principal second, 40% of monthly cash received from gross revenue in excess of $150,000. Such payments shall be made within 30 days following the end of each month on a pro rata basis to all holders of the Notes and shall result in a permanent reduction of the principal amounts due thereunder.The principal amount of each Note and all accrued and unpaid interest, as maybe outstanding, may be converted into common shares of the Corporation (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 termsat the option of the holder at anytime. at the option of the Corporation, at the Conversion Price if and when the closing price of the ...

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