Railtown AI Technologies Inc. announced a non-brokered private placement of 565 convertible debenture units at an issue price of CAD 1,000 per unit for proceeds of CAD 565,000 on November 17, 2022. Each unit consists of one unsecured convertible debenture and 3,335 common share purchase warrants. Each debenture unit principal amount of CAD 1,000 that matures in 36 months, bears simple interest at the rate of 10% per annum and is convertible into common shares of at a price of CAD 0.15 per Share, subject to standard adjustment mechanisms. Each of which is exercisable into one Share at a price of CAD 0.30 per Share for a period of 36 months.

The Company paid one arm's length entity CAD 45,200 in finder's fees and issued 301,333 non-transferable finder's warrants. Each finder's warrant is exercisable into one Share at a price of CAD 0.15 per Share for a period of 36 months. All securities issued in connection with the Financing are subject to a standard hold period of four months and one day in accordance with applicable securities laws.