Molecule Holdings Inc. announced a non-brokered private placement offering of 600 senior secured convertible debenture units at a price of CAD 1,000 per unit for gross proceeds of CAD 6,000,000 on May 31, 2022. Each unit will consist of CAD 1,000 principal amount of senior secured 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 adjustment pursuant to certain anti-dilution provisions. The debentures will bear interest at a rate of 8% per annum, which interest is payable in quarterly installments beginning June 30, 2022, and will mature on September 18, 2024.

The holder of the debenture is entitled to convert the indebtedness under the debenture at any time prior to the maturity date into common shares at a conversion price of $0.10, subject to adjustment pursuant to certain anti-dilution provision. As of the date that is four months and one day following the closing date, the company will have a right to prepay or redeem the principal amount, in whole or in part, at any time by providing a minimum of 30 days and a maximum of 60 days' notice. The transaction is subject to the policies of the Canadian Securities Exchange and approval if required.