AdRabbit Limited announced that it has entered into an agreement for a private placement of unsecured convertible loan for the gross proceeds of $700,000 on March 23, 2023. The transaction included participation from new investor 12.64 Fund, Limited Partnership, a fund managed by A-Labs Finance and Advisory Ltd. for $300,000 and other investors. All securities issued in the Offering will be subject to a statutory hold period of four months and one day.

The transaction is subject to receipt of approval of the TSX Venture Exchange. The offering is expected to be completed in multiple tranches. The outstanding principal amount under the loan agreement will mature 12 months following the advance of funds under the loan agreement, or such other date as may be agreed between the company and the lender and provided that the lender may extend the maturity date by up to an additional six months in lender's discretion.

Interest on the principal amount outstanding under the loan agreement will accrue at an annual rate of 6% and will be payable at the maturity date or upon conversion. Interest is payable in cash or, at the option of the lender, converted as part of a conversion. The loan agreement contains typical events of default for a transaction of this nature which accelerate the maturity date.