Jack Nathan Medical Corp. announced a signing of a secured convertible debenture for gross proceeds of CAD 8,000,000 on June 15, 2023. The transaction will include participation from new investor, Wal-Mart Canada Corp.

The debenture bear interest at the rate of 9% per annum from the date of issuance, payable quarterly until the earlier of the maturity date or the date of full conversion of the debenture. Subject to earlier conversion, the debenture will mature on the date that is three years from the date of issuance. The principal amount outstanding under the debenture shall be convertible, at the option of Wal-Mart Canada Corp., into units of the company at a price of CAD 0.105 per unit.

Such principal will be so convertible by Wal-Mart Canada Corp. in whole or part, at any time and from time to time prior to the maturity date. Each unit shall consist of one common share and one common share purchase warrant of the company, with each warrant entitling the holder to purchase one common share at an exercise price of CAD 0.105 until the date that is three years following the date of issue of such warrant.

The TSX Venture Exchange has conditionally accepted the transaction. The closing of the transaction remains subject to approval by shareholders of the company and the satisfaction of certain customary conditions precedent, including the final acceptance of the TSX Venture Exchange. In this regard, the company has called a shareholders' meeting for July 19, 2023.

The shareholders of the company will be asked to approve the transaction at that shareholders' meeting.