Perk Labs Inc. announced a non-brokered private placement of 6,250,000 units at an issue price of CAD 0.016 per unit for the gross proceeds of up to CAD 100,000 and convertible debentures for the gross proceeds of CAD 250,000, for the aggregate gross proceeds of CAD 350,000 on July 14, 2023. Each Unit will consist of one common share and one Common Share purchase warrant. Each Warrant will entitle the holder to purchase one additional Common Share at a price of CAD 0.05 per common share for a period of 24 months from the Closing.

The convertible debentures will be offered on varying terms, including interest rates ranging from 5% to 15% and differing acceleration terms and maturity dates specific to the terms of each convertible debenture agreement. The convertible debentures will be convertible into common shares of Perk Labs at a conversion price of CAD 0.05 per share, subject to the terms and conditions set forth in the specific convertible debenture agreement. The Closing is subject to customary closing conditions, including, but not limited to, the receipt of all necessary approvals.

All securities issued pursuant to the private placement will be subject to a statutory hold period of four months and one day following the Closing. The private placement of the Units and the convertible debentures is expected to close on or before August 24, 2023.