Liquid Media Group Ltd. announced that it has entered into a securities purchase agreement for the private placement of 20% original issue discount convertible debenture along with warrants for gross proceeds of CAD 2,500,000 on February 22, 2023. The transaction included participation from an institutional investor. The warrants are exercisable to purchase 11,574,074 common shares.

The Warrant has term of a five year and six months. The debentures will be convertible, at the option of the holder, into common shares, at a conversion price based on a discount to the company's lowest VWAP for a period preceding the date of conversion, subject to a floor conversion price. The company has the option to prepay this debenture at any time after the original issue date at an amount equal to the prepayment amount which is, in general, 115% of the outstanding principal amount plus other costs due to the purchaser, if any.

The company will get net proceeds of CAD 2,210,000 deducting placement agent fees and offering expenses.