Reservoir Capital Corp. (CNSX:REO) announced a non-brokered private placement of unsecured convertible notes and units for the gross proceeds of CAD 3,000,000 on December 11, 2019. The company will raise gross proceeds up to CAD 3,000,000 from units and gross proceeds up to CAD 2,000,000 from convertible notes. The transaction will only include participation from accredited investors. Each unit will consist one common share and one common share purchase warrant. Each warrant is exercisable into one common share at an exercise price of CAD 0.07 per warrant for a period of 12 months from the date of issuance. The company intends to complete the units offering in two tranches, where in first tranche units will be offered at a price of CAD 0.055 per unit to raise up to CAD 2,000,000 and CAD 200,000 in minimum subscriptions. The first tranche is expected to close on December 27, 2019. The second tranche of units will be offered at CAD 0.06 per unit to raise up to CAD 2,000,000 and CAD 200,000 in minimum subscriptions. The second tranche is expected to close on January 31, 2020. Under the debt offering, the company intends to raise minimum subscription of CAD 50,000 per subscriber. The convertible notes will bear an interest rate of 12% per annum, compounded annually until redeemed or converted in accordance with the terms of the convertible notes. The convertible debts will have a maturity date of 36 months from the date of issuance. From and after the date of issuance of convertible notes, the outstanding principal under the convertible notes will be convertible, at the option of the holder, into units where the warrants have maturity period until December 31, 2020, the conversion price of the principal of the convertible notes shall be CAD 0.07 per convertible note unit; and from and after January 1, 2021 until the maturity date, the conversion price of the principal of the convertible notes shall be CAD 0.09 per convertible note unit. The company expects to close the notes offering on or around January 31, 2020. The company may pay finder’s fee in the form of cash or common shares of up to 6% of the subscription amount for any Units sold to accredited investors. All securities issued in connection with the offering will be subject to a four-month hold period from the date of issuance. Closing of the offering is subject to CSE approval.