Levitee Labs Inc. announced that it has signed a purchase agreement to receive $12,000,000 in a round of funding on October 21, 2021. The company will issue warrant and convertible loan in the transaction. The transaction will be completed in tranches.

The company will receive $2,500,000 in its first tranche, with debt maturing on October 20, 2023 with interest payable in an amount equal to 10% per annum of the amount of the tranche 1 advance. Any subsequent advances under the Loan, will be subject to interest payable by the company in an amount equal to 20%, to be applied to the term between the date of the relevant advance date and the maturity date. The closing of tranche 1, and each subsequent tranche of the Loan, will be subject to the satisfaction of customary closing conditions, including the final regulatory approval by the Canadian Securities Exchange.

The Loan provides for 25% warrant coverage for each advance or draw down, determined as being 25% of the principal amount of the tranche divided by the Company's share price at the time of the advance. The exercise price of the warrants will be set at 150% of the Company's share price at the time of the advance and the warrants will expire three years after the date they are granted. Subject to the satisfaction of the Tranche 1 closing conditions, The company will issue 1,378,778 warrants to the investor.

Each warrant will entitle the investor to purchase one common share of the company at a price of $0.68 per share for a term of three years. As part of the loan agreement, the investor will have the option to convert up to 50% of the principal amount of the loan into shares at a fixed conversion price equal to 125% of the market price of the shares at the time of the applicable draw down. Subject to the satisfaction of the tranche 1 closing conditions, the fixed conversion price for tranche 1 will be $0.544 per share.

In addition, The investor may at its option, once every thirty days, request and require that the debt represented by the interest that has been deemed to accrue on the loan be converted into shares pursuant to a private placement price equal to 90% of the last closing price of the shares on the day prior to the notice of such conversion.