Humble Fume Inc. HUMBF HMBL announced its intent to finalize a non-brokered private placement of approximately 2,000 convertible debenture units, at a subscription price of CA $1,000 per debenture unit, for gross proceeds of approximately CA $2 million $1.5 million. The debenture unit will consist of one CA $1,000 Principal amount secured subordinated convertible debenture of the company and 6250 share purchase warrants of the company. At a conversion price of CA $0.06 per common share, the holder of each debenture shall convertible the outstanding principal amount of each debenture to common shares of the company at any time prior to maturity. Each warrant is exercisable to buy one common share at an exercise price of CA $0.08 for a period of 36 months from the closing date of the offering. The debentures will mature within 36 months, can be repaid at the option of the company, and will bear interest at a rate of 10% per annum, payable on the advance of conversion, repayment, or maturity. The debentures will be secured by general security agreements over the company's assets, but subordinated to the company's senior secured lender.
In connection with the offering, the company may pay certain finders a cash commission and/or issue such finders non-transferable share purchase warrants, in accordance with Canadian Securities Exchange policies. The company intends to use the profits generated from the offer to pay for general working capital. The offering can be closed in tranches.
The offering will close on or around June 9, 2023. The offer is subject to certain conditions, including, but not limited to, receiving all necessary approvals, including the approval of the CSE.