TransCanna Holdings Inc. announced a non-brokered private placement of 1,156 12% unsecured convertible debentures at an issue price of CAD 1,000 for gross proceeds of CAD 1,156,000 on September 15, 2021. The securities issued at 12% interest rate per annum payable monthly in arrears on the last calendar day of each month until maturity. The first Interest payment will be made on September 30, 2021 and will consist of interest accrued from and including the closing date to September 30, 2021.

The convertible debentures will mature on the date that is one year from the date of issuance. The debentures are convertible, at the option of the holder, into units at a conversion price of CAD 0.85 per unit, at any time prior to September 30, 2022. Each unit consists of one common share in the capital of the Company and one common share purchase warrant.

Each Warrant shall entitle the holder to purchase one additional common share at a price of CAD 1.00 for a period of two years from the closing date. Certain insiders of the company subscribed for an aggregate of 300 Convertible Debentures in the transaction. The company paid CAD 68,100 as finder's commissions to to eligible persons in connection to the transaction.

The transaction is subject to the approval of the Canadian Securities Exchange. The debentures and the units issuable upon conversion of the Convertible Debentures will be subject to a statutory hold period expiring on the date that is four months and one day after the closing date.