Silo Wellness Inc. announced that it has entered into an subscription agreement for a private placement of convertible debentures for gross proceeds of up to CAD 5,950,000 on April 14, 2022. The transaction will include participation from new investor Global Tech Opportunities 14, a fund managed by Alpha Blue Ocean Investment Group. The subscription agreement provides a commitment to fund the corporation up to CAD 5,950,000 by subscribing for CAD 7,300,000 aggregate principal amount of convertible debentures, inclusive of the commitment fee, in twenty tranches, each in the aggregate principal amount of CAD 350,000 each tranche convertible upon notice at the lower of the closing price of the common shares on the CSE at the time of delivery of the relevant conversion notice to the corporation and CAD 0.05; the convertible debentures shall be subscribed for at a subscription price of eighty-five percent of the par value of the convertible debentures. 41,650,000 warrants exercisable at CAD 0.05 shall be attached to the first tranche. In connection with the subscription agreement, the company has agreed to pay the subscriber a commitment fee of CAD 300,000 where CAD 150,000 shall be added to the principal amount of the debentures issued in connection with each of the first two tranches.

On July 5, 2022 the parties have amended the subscription agreement to set a floor on the convertible debt of the next tranche at the greater of CAD 0.0001 or 20-day VWAP rather than the contracted make-whole formula.