Albert Labs International Corp. announced that it has entered into a security purchase agreement for the issuance of convertible debenture for gross proceeds of CAD 830,000 on March 23, 2023. The transaction will include participation from new investor Cantheon Capital.

The company will issue the securities in two tranches. The convertible debenture conversion price, if executed, shall be at a 20% discount to the closing price of the company's common stock 20-day VWAP trading average, as quoted the effective day of the convertible debenture, subject to a minimum of CAD 0.05. They include a 10% interest rate paid in cash annually in arrears, with an option to pay at the company's election within the first 6 months of closing, subject to a 3% prepayment penalty.

The convertible debentures include 100% warrant cover, exercisable at the same conversion price as the common shares upon issue, as approved by the Canadian Securities Exchange. The completion of the convertible debentures remains subject to the final agreement and regulatory approvals, including from the Canadian Securities Exchange.