Diamond Estates Wines & Spirits Inc announced a non-brokered private placement of CAD 1,830,000 aggregate principal amount of 10% unsecured convertible debentures on June 10, 2021. The transaction included participation from certain insiders of the company, including existing investors Oakwest Corporation Limited and Lassonde Industries Inc which purchased CAD 1,160,000. The debentures bear interest from the date of issue at 10.0% per annum, calculated monthly, in arrears. The interest accrues on the principal outstanding under the debentures until such principal is repaid or converted. The debentures will mature on July 2, 2023, unless the holder requests to accelerate the maturity date in the event the company completes an equity financing for minimum gross proceeds of CAD 2,000,000 within the next 12 months. The debentures are convertible at the holder's option from the date of issuance until the maturity date at a conversion price of CAD 0.185. The debentures are also redeemable at the company's option, subject to an early redemption fee during the first 12 months following closing of the offering of an additional 1% interest and, if during the first six months, a minimum six months interest. All securities issued in connection with the offering are subject to a four-month hold period expiring October 11, 2021. The approval of the shareholders of the Company will be sought at the next meeting of shareholders, to be held on or before the date of its 2021 annual meeting of shareholders.

The TSX Venture Exchange has accepted for filing documentation with respect to offering. The transaction included participation from four placees including J. Murray Souter for CAD 50,000 and Ryan Conte for CAD 20,000.