Crown Capital Partners Inc. announced a a non-brokered private placement of 1,500 units at a price of CAD 980 per unit for gross proceeds of CAD 1,470,000 on December 29, 2023. Each unit is comprised of one 10% redeemable secured subordinated debenture in the principal amount of CAD 1,000 due June 30, 2025 and 50 common share purchase warrants of the company. Each warrant entitles the subscriber to purchase one share at an exercise price of CAD 7 per share, subject to adjustment in certain events, at any time on or before the date that is 36 months from the date of issuance of the warrant.

The debentures bear interest at a rate of 10% per annum from the date of issue, payable in arrears semi-annually on June 30 and December 31 of each year, commencing on June 30, 2024. The principal amount of each debenture, plus all accrued and unpaid interest thereon, shall be redeemable, in whole or in part, at the option of the company at any time after six months from the date of issuance and prior to the maturity date. The transaction included participation from new individual investors John Brussa, Chris Johnson, Alan Rowe, Steven Sharpe, C. Robert Gillis and Charles Frischer.

All securities issued in connection with the offering are subject to a hold period of four-months and one day in Canada. The final closing of the offering is subject to receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. Charles Frischer currently own approximately 11% of the outstanding shares of the company.