Orbite Technologies Inc. (TSX:ORT) announced a private placement of 8,000 to 12,000 units at a price of CAD 1,000 per unit for gross proceeds of between CAD 8,000,000 and CAD 12,000,000 on August 5, 2016. Each unit consists of 9% secured convertible debentures of principal amount of CAD 1,000 and 833 warrants. The debenture is convertible into shares of the company at a fixed conversion price of CAD 0.42 and will mature five years from the date of issuance. Each warrant entitles its holder to purchase one share at an exercise price of CAD 0.55 for a period of three years. The debenture is secured against investment tax credits receivables resulting from the construction of its HPA plant in Cap-Chat, Quebec for the 2016, 2017 and 2018 financial years. For a period of three years from issue date, the company may redeem up to, but not more than, 65% of the initial principal amount of the debentures, upon which, the company shall issue warrants to purchase shares equal to 1% of the total number of shares issuable upon full conversion of the debentures for each 1% of the principal amount being redeemed. The redemption warrants shall have an exercise price of CAD 0.44 and expire on the maturity date of the debentures. After the completion of three years, the company shall have the right to redeem all or part of the debentures without issuance of redemption warrants or other compensation. The transaction is subject to approval of TSX Venture Exchange. The company expects to complete the transaction on or about August 10, 2016.