On June 27, 2023, Railtown AI Technologies Inc. closed the transaction. The company has issued 2,723,000 unit at an issue price of CAD 0.15 per unit for the gross proceeds of CAD 408,450 in its second and final tranche. The company had paid CAD 81,236 cash fees to the finders and issued 541,573 non-transferable common share purchase warrant. Each Finder’s Warrant entitles the holder thereof to acquire one share at an exercise price of $0.15 per Share for a period of 36 months from the date of issuance. In addition, the Company paid a flat referral fee of $15,000 plus applicable taxes to one finder and issued 100,000 shares to that finder at a deemed price of $0.15 per Share.

Both the Warrants and the Finder’s Warrants are subject to acceleration such that if, during a period of 10 consecutive trading days prior to their respective expiry dates, the daily volume-weighted average trading price of the Shares on the Canadian Securities Exchange or such other stock exchange where the majority of the trading volume occurs, exceeds $0.50 for each of those 10 consecutive days, the company may, within 30 days of such an occurrence, give written notice to the holders of the warrants and the finder’s Warrants that the securities will expire on the 30th day following the giving of notice unless exercised by the holders prior to such date.