XPhyto Therapeutics Corp. (CNSX:XPHY) announced that it has entered into an agreement and will issue unsecured convertible debentures and 500,000 warrants for gross proceeds of CAD 2,000,000 on January 27, 2020. The debentures will be issued at a coupon rate of 8% per annum, payable semi-annually in the transaction.

The debentures will mature on the date that is two years from the date of issuance and will be convertible at the option of the holder into 500,000 common shares of the company at any time prior to maturity. The conversion of the debentures may be forced in part or in whole at the option of the company if the 15-day volume weighted average price of the company's common shares on the Canadian Securities Exchange exceeds CAD 2.50 per share. The warrants are exercisable by the holder into common shares of the company at a price of CAD 1.50 per share for a period of two years from the date of issuance.

The transaction will include participation from PharmaCielo Ltd. who will subscribe for a minimum of CAD 500,000. The transaction is subject to Canadian Securities Exchange approval. The securities issued in the transaction are subject to a four month hold period.