Avila Energy Corporation announced that it will issue 10,000 debenture units at an issue price of $1,000 for the gross proceeds of $10 million on June 7, 2023. The company will issue convertible debentures in the transaction. The Units shall consist of consisting of one 24-month convertible Unit with a stated face value of US$1,150 per Unit, convertible in the one common share at a conversion price of $0.50 per share and a two-year warrant representing the right to purchase one share for every dollar of the purchase price of the Unit at an exercise price of $0.50share.

The transaction is anticipated to close promptly after completing all required legal documentation which are customary with a similar type of investment. The company issue securities pursuant to Section 4(a)(2) and/or Rule 506(b) of Regulation D under the U.S. Securities Act of 1933.