Axis Auto Finance Inc. announced a private placement of non-convertible debentures for proceeds of CAD 2.67 million on September 11, 2023. The debentures mature on September 30, 2025 and carry an annual interest rate of 12%, accrued and payable quarterly in arrears on each March 31, June 30, September 30 and December 31, in cash. Subject to certain conditions, the company will have the right to prepay any or part of the debentures at any time prior to the maturity date by paying the principal amount and accrued and unpaid interest.

The principal amount of the debentures is not convertible into common shares or any other securities of the company. The company also issued an aggregate of 12,015,000 common share purchase warrants, each of which entitles the holder thereof to purchase one common share of the company at an exercise price of CAD 0.16 per share for a period of three years from the date of issuance. The debentures, warrants and warrant shares are subject to a four-month statutory hold period commencing on the date of their issuance.

As part of the transaction, an aggregate of CAD 600,000 principal amount of the debentures and 2,700,000 Warrants were purchased by officers and directors of the company.