Hank Payments Corp. announced a non-brokered private placement of 1,000 convertible debenture units at an issue price of CAD 1,000 per unit for gross proceeds of CAD 1,000,000 on August 29, 2022. Each unit consists of one CAD 1,000 convertible debenture and 3,333 common share purchase warrants.

The Debentures mature on and become payable 36 months from the closing date and bear interest at a fixed rate of 10% per annum, payable quarterly. The debentures are direct, unsecured obligations of the company, ranking equally with all other unsecured indebtedness of the Company. At any time during the term, a holder of debentures may elect to convert the outstanding net principal amount, or any portion thereof, into common shares at a conversion price of CAD 0.15 per share.

The debentures will be converted automatically into common shares upon reaching a ten-day volume weighted average trading price of CAD 0.50 or greater, twelve or more months from the closing date. Each warrant entitles the holder to purchase one common share of the company at an exercise price of CAD 0.25 per common share and exercisable for twenty-four months from the closing date.