Hank Payments Corp. announced a non-brokered private placement of CAD 1,000,000 on March 10, 2023. The company will issue secured convertible debenture units in the transaction.

Each unit consists of one CAD 1,000 convertible debenture and 3,333 common share purchase warrants. The debentures mature on and become payable after 5 years of closing, and bear interest at a fixed rate of 10% per annum, payable in arrears semiannually in cash on December 31 and June 30 of each year. At any time during the term, a holder of debentures may elect to convert the outstanding net principal amount, or any portion thereof, into common shares at a conversion price of CAD 0.075 per share during the first year and CAD 0.10 per share thereafter.

The company may force the conversion of the principal amount of the then outstanding debentures at any time at the conversion price on not less than 5 days' notice if the volume weighted average trading price of the common shares on the TSX Venture Exchange for any 10 consecutive trading day period is equal to or greater than CAD 0.35. Each warrant entitles the holder to purchase one common share of the company at an exercise price of CAD 0.10 per common share for 12 months. All securities issued pursuant to the offering are subject to a statutory hold period for four months and one day.

The transaction is subject to approval from the TSX Venture Exchange.