Molecule Holdings Inc. announced a brokered private placement offering of 3,000 unsecured convertible debenture units at a price of CAD 1,000 per unit for gross proceeds of CAD 3,000,000 on June 15, 2022. The transaction will include participation from certain insiders for CAD 700,000. Each unit will consist of CAD 1,000 principal amount of unsecured convertible debentures and 6,000 common share purchase warrant, with each warrant entitling the holder thereof to acquire one common share at an exercise price of CAD 0.15 per warrant share for a period of 36 months from the date of closing of the transaction subject to an accelerated expiry date at the option of the company in the event that the 10-day volume weight average price of the common shares.

The company in four months and a day from the date of issuance can prepay or redeem the indebtedness under the debentures, in whole or in part, without penalty. The debentures will bear interest at a rate of 8% per annum, which interest shall be payable semi-annually in cash within 30 days of the last day of each June and December until the maturity date. The holders of debentures will be entitled to convert the indebtedness under the debentures at any time prior to the maturity date or if called for redemption, the date fixed for redemption, at a conversion price of CAD 0.10 per common share.

The company has also granted the agent an option to sell up to an additional CAD 450,000 of debenture units under the offering, exercisable in whole or in part up until 48 hours prior to the closing date. The transaction is subject to the policies of the Canadian Securities Exchange and approval if required. The transaction is expected to close on July 15, 2022.