Water Ways Technologies Inc announced a private placement of up to 1,000 convertible debenture units at a price of CAD 1,000 per convertible debenture unit, for gross proceeds of up to CAD 1,000,000 on June 27, 2022. Each convertible debenture unit is comprised of one unsecured convertible debenture with a principal amount of CAD 1,000 and 2,857 common share purchase warrant with each convertible debenture warrant exercisable, upon payment of an additional CAD 0.45, into one additional common share in the capital of the Company. If the company does not repay the subscription price on or before the date that is 24 months from the closing date, the term will be extended by an additional 12 months and the company will be obligated to pay a penalty in cash only, equal to 10% of any amounts of the subscription price that were outstanding and not repaid at the end of the term.

The convertible debentures shall bear an annual interest rate of 8% payable quarterly in cash only. The convertible debentures are subject to conversion into common shares, at the option of the holder, at a conversion price of CAD 0.35 per common share. The transaction may close in one or more tranches.

The company expects to pay finder's fees in association with the financing, payable in cash, of up to 7% of the gross proceeds, as well as the issuance of finder warrants as is equal to 7% of the convertible debenture units sold. Each convertible debenture finder warrant will be exercisable into a Common Share of the Company upon payment by the holder thereof of CAD 0.35 per convertible debenture finder warrant. Closing of the Financing is conditional of receipt of all regulatory approvals including the approval of the TSX Venture Exchange.