Beta Energy Corp. announced a private placement of class A convertible preferred shares on November 28, 2022. Each preferred share is convertible, without payment of additional consideration, into one common share subject to certain conversion dates. Simple interest will accrue at a rate of 10% per annum on the principal value of each outstanding preferred share starting from the date of issuance until the fifth anniversary of the date of issuance, payable to the subscriber in cash annually in arrears. The preferred shares are subject to a statutory hold period in Canada of four months and one day. In the event a preferred share is converted at any time during the 18-month period following the date of issuance, the holder will be entitled to receive, in addition to the common shares issuable to the holder pursuant to such conversion, one-half of one common share purchase warrant. Each warrant will be exercisable for one common share at a price of CAD 2.00 per warrant share for a period of 5 years from the date of issuance of the warrant.

On the same date, the company received its first tranche and issued 2,938,000 preferred shares at an issue price of CAD 1.25 for gross proceeds of CAD 3,672,500.