Perk Labs Inc. announced a non-brokered private placement consisting of 50 debenture units issued at CAD 10,000 per unit for proceeds of up to CAD 500,000 on December 13, 2022. Each Debenture Unit will consist of a 15% unsecured convertible debenture of the company in the principal amount of CAD 10,000 and 200,000 common share purchase warrants. The debentures will mature on the date that is three years following the closing and are convertible at the holder's option, at any time, after the date that is four months and one day from the closing, into common shares of the company at a conversion price of CAD 0.05 per share.

The debentures will bear interest at a rate of 15% per annum payable quarterly starting on March 30, 2023. Each Warrant will entitle the holder to purchase one common share at a price of CAD 0.05 for a period of three years from closing date. The completion of the transaction is anticipated to occur on or about December 30, 2022 and is subject to regulatory approval, including approval of the CSE.

All securities issued in connection with the offering will be subject to a statutory hold period of four months and a day from the closing date of the transaction. A finder's fee of up to 8% of the gross proceeds of the private placement may be paid in cash on all or any portion of the transaction. Additionally, finder's warrants may be issued in an amount up to 8% of the number of debenture Units sold under the Private Placement.

Each finder's warrant may be exercised to acquire one common share at a price of CAD 0.05 per share for a period of three years from the closing. Insiders of the company are expected to participate in the transaction.