Tenet Fintech Group Inc. announced a brokered private placement of up to 24,000,000 equity units at a price of CAD 0.20 per equity unit for gross proceeds of up to CAD 4,800,000, and up to 5,200 convertible debenture units at a price of CAD 1,000 per convertible debenture unit for gross proceeds of up to CAD 5,200,000; for aggregate gross proceeds of up to CAD 10,000,000 on December 12, 2023. Each equity unit is comprised of one common share and one common share purchase warrant. Each warrant shall entitle the holder thereof to purchase one common share at an exercise price of CAD 0.40 for a period of 24 months from the date of issuance thereof.

Each convertible debenture unit is comprised of one 10% unsecured convertible debenture in the principal amount of CAD 1,000 and 5,000 common share purchase warrants. The convertible debentures will mature thirty-six months from the date of issuance thereof and, subject to prior conversion in accordance with their terms, will be repaid in cash at the maturity date. Each convertible debenture warrant will be exercisable to acquire one common share at an exercise price of CAD 0.40 for a period of 24 months from the date of issuance thereof.

The convertible debentures shall bear interest at a rate of 10% per annum from the date of issue, payable monthly in arrears in cash. The company shall pay to the agent a cash commission equal to 7% of the gross proceeds of the financing. In addition, the company will issue to the agents - that number of warrants which is equal to 7% of the number of equity units sold pursuant to the equity unit offering; and that number of warrants which is equal to 7% of the number of convertible debenture units sold, including any convertible debenture units sold pursuant to the exercise of the agent's option, where any such exercise occurs.

Each broker warrant will entitle the holder thereof to purchase one common share at an exercise price of CAD 0.20 for a period of 24 months following the date of issuance thereof and each convertible debenture broker warrant will entitle the holder thereof to purchase one convertible debenture unit at an exercise price of CAD 1,000 for a period of 24 months following the date of issuance thereof. The company will pay a fee to the agent in the amount of CAD 50,000 payable upon completion of the financing for gross proceeds of a minimum of CAD 7,500,000. The securities comprising the convertible debenture units will be subject to a hold or restricted period of four months and a day from the date of issuance thereof.

The financing may close in one or more tranches, the first tranche of which is anticipated to close on or about December 15, 2023, or such later date as the company and the agent may determine. The closing is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the Canadian Securities Exchange. The company will grant the agent an option to increase the size of the convertible debenture unit offering by up to 15% of the number of convertible debenture units by giving written notice of the exercise of the agent's option, or a part thereof, to the company at any time up to 48 hours prior to any closing of the financing.