Mijem Newcomm Tech Inc. announced a non-brokered private placement of 750 convertible debentures at a par price of CAD 1,000 per share for minimum gross proceeds of CAD 750,000 led by an existing investor for CAD 250,000 on October 4, 2022. The debentures will mature in 36 months from the date of the issuance, and will bear interest at a fixed rate of 10% per annum, which will accrue annually until conversion or maturity. Each debenture will be convertible into common shares at the option of the holder at any time after the one-year anniversary from the date of issuance and before the close of the third business day prior to the maturity date.

Each debenture will convert at a price equal to a 20% discount to the volume weighted average trading price of the common shares for the 10 day period ending on the one-year anniversary from the date of issue. At the option of the company, with 20 days written notice, the debentures may be converted into common shares upon maturity at a conversion price that is the lesser of the initial conversion price or a 25% discount to the volume weighted average trading price of the common shares for the 10 day period ending on the maturity date. The debentures will be senior secured obligations of the company secured by a general security agreement over all of the company's present and after-acquired property.

The transaction is subject to all necessary regulatory and stock exchange approvals. The debentures and any common shares issued on the conversion will be subject to a statutory hold period in Canada of four months and one day following the date of issuance.