Distinct Infrastructure Group Inc. (TSXV:DUG) announced a private placement of units for gross proceeds of CAD 10,000,000 on September 12, 2018. Each unit consists of CAD 1,000 principal amount of unsecured subordinated convertible debt and 225 common share purchase warrants. Each warrant entitles the holder to purchase one common share of the company at CAD 0.70 per share until September 12, 2020. The debenture carries a coupon of 12.5% per annum for the first six months and 15% per annum thereafter until paid in full The debenture would mature on September 12, 2020. The accrued interest shall be paid on the earlier of the redemption date or maturity date. The company paid a commitment fee of 1% of the initial principal amount was paid at closing to subscribers of the debenture units. The debentures are convertible at the option of the holders into common shares at a price of CAD 0.70 per common share, up to a maximum of CAD 500 for each CAD 1,000 of principal amount of debentures. If the debentures are not redeemed by the company on or before March 12, 2019, the company will issue 50 additional warrants for each CAD 1,000 of principal amount of debentures outstanding. Each penalty warrant entitles the holder to acquire one common share, for an exercise price equal to the 10 days volume weighted average price on the date of issuance, at any time up to 18 months following the issuance date of the penalty warrants. The transaction included participation from a single placee Altacorp Capital Inc for CAD 200,000. The transaction is subject to TSX Venture Exchange.