Spectral Medical Inc. announced a bought deal private placement consisting of the sale of 9% 6,186 convertible notes at an issue price of CAD 1,374 for the gross proceeds of CAD 8,499,564 on May 9, 2024. The notes bear 9% and matures on May 1, 2028. The holders of the Convertible Notes may convert all or any portion of the Convertible Notes into common shares at a conversion price of CAD 52 per Common Share, subject to customary antidilution adjustments.

The Convertible Notes are convertible into approximately 16.4 million Common Shares (or approximately 18.8 million Common Shares if the over-allotment option, as described below, is exercised in full), subject to customary anti-dilution and make whole fundamental change adjustments. The Offering is expected to close on or about May 23, 2024 and will be subject to regulatory approvals and customary closing conditions, including listing of the common shares issuable upon conversion of the Notes on the Toronto Stock Exchange.