BluSky Carbon Announces Closing of US$500,000 Secured Debenture Financing and Announces Private Placement Financings

Rhea-AI Summary

BluSky Carbon Inc. (CSE:BSKY) has announced multiple financing initiatives: First, the company closed a US$500,000 secured debenture offering at US$1,000 per unit with a 7% annual interest rate and four-month maturity. Second, they plan a private placement offering of units at $0.20 each, targeting $300,000 in proceeds, with each unit including one common share and a warrant exercisable at $0.30 for 24 months. Third, they intend to raise up to $750,000 through convertible debentures at US$1,000 per unit with 12% annual interest and 24-month maturity, convertible to common shares at $0.24 per share.

The proceeds from these financings will be used for business development and general working capital purposes. The Unit Offering is expected to close around February 18, 2025. Finder's fees may apply to eligible arm's length persons for certain subscriptions in the Unit and Convertible Debenture offerings.

Positive

• Secured US$500,000 in immediate financing through debenture offering
• Potential additional funding of up to $1.05M through planned offerings
• No finder's fees required for initial US$500,000 debenture offering

Negative

• High interest rates (7% and 12%) on debenture offerings
• Short 4-month maturity on US$500,000 secured debenture
• Potential dilution through unit offering and convertible debentures

OLD SAYBROOK, CT AND VANCOUVER, BC / ACCESS Newswire / February 11, 2025 / BluSky Carbon Inc. (CSE:BSKY) ("BluSky" or the "Company"), an innovative entry into the carbon removal clean technology sector, is pleased to announce that the Company has closed a non-brokered private placement of secured debentures of the Company (the "Debentures", and each a "Debenture Unit") at a price of US$1,000 per Debenture Unit for gross proceeds to the Company of US$500,000 (the "Debenture Offering").

The Debentures will bear interest at a rate of 7% per annum (the "Interest"), calculated and payable monthly in cash, commencing February 28, 2025, are subject to the terms of a debenture certificate, and are secured against the assets of the Company. The Company may elect to pay all or any portion of the Interest "in kind". The Debentures will mature four months following the date of issuance and were issued to a single, arm's length purchaser. There were no finder's fees or commissions payable in connection with the Debenture Offering.

The net proceeds received by the Company from the Debenture Offering are intended to be used for the ongoing development of the Company's business model and for general working capital purposes.

The Company also announces its intention to complete a non-brokered private placement offering ("Unit Offering") of units (the "Units") of the Company at a price of $0.20 per Unit, for gross proceeds of up to $300,000. Each Unit will be comprised of one common share of the Company (the "Common Shares") and one Common Share purchase warrant (the "Warrants"), with each Warrant exercisable for one Common Share at a price of $0.30 for a period of 24 months. The Units and underlying securities will be subject to a hold period of four months and one day pursuant to applicable securities laws. The Unit Offering is expected to close on or about February 18, 2025, and the proceeds thereof are intended to be used for general corporate and working capital purposes.

Finally, the Company announces its intention to complete a non-brokered private placement (the "Convertible Debenture Offering") of unsecured convertible debentures of the Company (the "Convertible Debentures") at a price of US$1,000 per Convertible Debenture unit for gross proceeds to the Company of up to $750,000 (the "Convertible Debenture Offering"). The Convertible Debentures will bear interest at a rate of 12% per annum, calculated and payable quarterly in arrears, commencing three months from closing, and mature 24 months following the date of issuance (the "Maturity Date"). The principal amount of each Convertible Debenture (the "Principal Amount") and any interest accrued thereon will be convertible into Common Shares at a conversion price of $0.24 per Common Share (the "Conversion Price") at the option of the holder of a Convertible Debenture ("Debenture Holder") at any time prior to the close of business on the Maturity Date. The net proceeds received by the Company from the Convertible Debenture offering are intended to be used for general corporate and working capital purposes.

Finders' fees may be paid in relation to the Unit Offering and the Convertible Debenture Offering to eligible arm's length persons with respect to certain subscriptions accepted by the Company, in accordance with the policies of the Canadian Securities Exchange (the "CSE").

This press release is not an offer to sell or the solicitation of an offer to buy the Units or Convertible Debentures in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The Units and Convertible Debentures being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such neither the Units nor Convertible Debentures may be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.

ON BEHALF OF THE COMPANY

William ("Will") Hessert
Chief Executive Officer

BluSky Carbon Inc.
35 Research Parkway,
Old Saybrook, CT, 06475
Tel. (860) 577-2080
Web, https://bluskycarbon.com/
Email. info@bluskycarbon.com

The CSE and Information Service Provider have not reviewed and do not accept responsibility for the accuracy or adequacy of this release.

Forward-Looking Statements Caution. This news release contains forward-looking statements relating to the intended use of proceeds from the Debenture Offering, the anticipated completion and use of proceeds from the Unit Offering and Convertible Debenture Offering, the Company's business and plans generally and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include the failure to satisfy the conditions of relevant securities regulatory authorities and exchange(s) and other risks detailed from time to time in the filings made by the Company with securities regulators. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by applicable law.

SOURCE: BluSky Carbon Inc.

View the original press release on ACCESS Newswire

FAQ

What are the terms of BluSky Carbon's (BSKCF) US$500,000 secured debenture offering?

The secured debentures are priced at US$1,000 per unit, bearing 7% annual interest payable monthly, with a four-month maturity period from issuance date.

What is the conversion price for BluSky Carbon's (BSKCF) convertible debentures?

The convertible debentures can be converted into common shares at $0.24 per share at any time before the maturity date.

When will BluSky Carbon's (BSKCF) Unit Offering close?

The Unit Offering is expected to close on or about February 18, 2025.

How much total funding is BluSky Carbon (BSKCF) seeking through its three offerings?

BluSky Carbon is seeking a total of approximately US$1.55 million through the secured debenture (US$500,000), Unit Offering ($300,000), and convertible debenture offering ($750,000).

What are the terms of BluSky Carbon's (BSKCF) Unit Offering?

Units are priced at $0.20 each, comprising one common share and one warrant exercisable at $0.30 for 24 months, targeting gross proceeds of up to $300,000.