X1 Entertainment Group Inc. announced a non-brokered private placement of unsecured convertible debentures for gross proceeds of up to CAD 500,000 on November 1, 2023. The debentures will mature on the date that is 12 months from the date of issuance and shall bear interest at a rate of 5% per annum from the closing date, payable on the earlier of the maturity date or the conversion date. A portion of the offering, approximately CAD 150,000, is anticipated to be the distribution of debentures in settlement of existing debt.

The company shall have the right to pay all accrued and unpaid interest either in cash or in units at a price of CAD 0.055 per unit, in its sole discretion, and on the maturity date shall also have the right to convert the principal amount of the debentures into units rather than repay in cash. The principal amount of debentures may be converted into units of the company in whole or in part, at the option of the holder, at any time following the closing date but on or before the maturity date, into units at a price of CAD 0.055 per unit. Each unit will consist of one post-share consolidation share and one post-share consolidation share purchase warrant.

Each Warrant will entitle the holder thereof to acquire one additional post-share consolidation share at a price of CAD 0.055 per warrant share for a period of 24 months from the date of issuance. Closing of the offering is expected to occur as soon as practicable and may occur in one or more tranches. Any securities issued in connection with the offering will be subject to applicable resale restrictions and the policies of the CSE.