Oceanic Iron Ore Corp. announced a non-brokered private placement secured convertible debentures for a gross proceeds of up to CAD 1,220,000 on September 8, 2022. The debentures carry a coupon rate of 8.5% per annum over a 60 month term, payable quarterly in cash or common shares, at the election of the company, at the market price of the common shares at the time.

The principal amount of the debentures will be convertible to units during the term at the election of the subscriber. The conversion price during the first year of the term is CAD 0.07 per unit, increasing to CAD 0.10 per unit for the remainder of the term. Each unit will consist of 1 common share of the company and 1 common share purchase warrant of the company, with each whole warrant entitling the holder to purchase one common share at a price of CAD 0.07 per common share for a period of 5 years after closing of the financing.

The debentures will be secured with a first ranking charge at any time against the assets of the company, ranking pari-passu with the current secured debenture holders and holders of the replacement debentures.