Cloud DX Inc. Announces $1.8 Million Private Placement of Secured Convertible Debentures

Rhea-AI Summary

Cloud DX Inc. (TSXV:CDX)(OTCQB:CDXFF) announced plans to complete a non-brokered private placement of 1,800 secured convertible debentures for up to $1.8 million. Each debenture is priced at $1,000, maturing in 18 months, with an interest rate of 18%. The proceeds will be used for inventory and general working capital. The offering is subject to TSX Venture Exchange approval, and the debentures will be convertible into common shares at C$0.16 per share. A statutory hold period of four months and one day applies to the securities issued.

Positive

• Planned private placement of $1.8 million potentially strengthens liquidity.
• 18% interest rate on convertible debentures may attract investors.
• Proceeds aimed at inventory and working capital could enhance operational capacity.

Negative

• None.

KITCHENER, ON / ACCESSWIRE / October 11, 2022 / Cloud DX Inc. ("Cloud DX" or the "Corporation") (TSXV:CDX)(OTCQB:CDXFF), is pleased to announce its intention to complete a non-brokered private placement of up to 1,800 secured convertible debentures (the "Convertible Debentures") at a price of $1,000 per Convertible Debenture for aggregate gross proceeds of up to $1,800,000 (the "Offering").

The Debentures will mature on the date that is 18 months from the date of issuance (the "Maturity Date") and shall bear interest at a simple rate of 18% per annum, payable upon the earlier of the conversion date or the Maturity Date. The principal amount of the Debenture is convertible, at the election of the holders, into common shares in the capital of the Corporation ("Common Shares") at a conversion price of C$0.16 per Common Share (the "Conversion Price") at any time prior to the Maturity Date. The Debentures will be secured against all present and after-acquired personal property of the Corporation, pursuant to a general security agreement.

The Corporation intends to use the net proceeds of the Offering for inventory and general working capital purposes. In connection with the Offering, the Corporation may pay finder's fees in cash or securities or a combination of both, as permitted by the policies of the TSX Venture Exchange. Closing of the Offering is expected to occur in one or more tranches, with the first tranche expected to close on or about October 31, 2022.

The Convertible Debentures and any securities issuable upon conversion will be subject to a statutory hold period of four months and one day from the date of issuance of the Convertible Debentures. The Offering is subject to final approval by the TSX Venture Exchange.

The Convertible Debentures will be offered and sold by private placement in Canada pursuant to exemptions from the prospectus requirements under National Instrument 45-106 Prospectus Exemptions, and in certain other jurisdictions on a basis which does not require the qualification or registration of the securities issued pursuant to the Offering.

About Cloud DX

Accelerating virtual healthcare's future, Cloud DX is making healthcare better for everyone. The Corporation's Connected Health^TM remote patient monitoring platform is used by healthcare enterprises and care teams across North America to virtually manage chronic disease, enable aging in place, and deliver hospital-quality post-surgical care at home. Providers partnering with Cloud DX achieve better healthcare and patient outcomes, reduce the need for hospitalization/rehospitalization, and reduce healthcare delivery costs through more efficient use of resources. Cloud DX is the co-winner of the Qualcomm Tricorder XPRIZE, a 2021 Edison Award winner, a Fast Company "World Changing Idea" finalist, and one of "Canada's Ten Most Prominent Telehealth Providers." The company was named 2022 Top Innovator by Canadian Business, and is an exclusive partner to Medtronic Canada, Teladoc Health Canada, and Equitable Life of Canada."

Social Links:

Twitter: https://twitter.com/CloudDX
Facebook: https://www.facebook.com/clouddxinc/
LinkedIn: https://www.linkedin.com/company/cloud-dx/
Instagram: https://www.instagram.com/cloud.dx/

For media inquiries please contact:

Janine Scott
Marketing Lead
888-543-0944
janine.scott@cloudDX.com

For investor inquiries please contact:

Jay Bedard
Cloud DX Investor Relations
647-881-8418
jay.bedard@CloudDX.com

SOURCE: Cloud DX Inc.

View source version on accesswire.com:
https://www.accesswire.com/719869/Cloud-DX-Inc-Announces-18-Million-Private-Placement-of-Secured-Convertible-Debentures

FAQ

What is the purpose of Cloud DX's private placement of secured convertible debentures?

Cloud DX aims to use the net proceeds from the placement for inventory and general working capital purposes.

What are the key terms of the convertible debentures offered by Cloud DX?

The convertible debentures will mature in 18 months, have an 18% interest rate, and are convertible into common shares at C$0.16 per share.

How much capital is Cloud DX looking to raise through this offering?

Cloud DX is looking to raise up to $1.8 million through the offering of secured convertible debentures.

When is the expected closing date for the offering of convertible debentures?

The first tranche of the offering is expected to close on or about October 31, 2022.

Is the offering of convertible debentures subject to any regulatory approval?

Yes, the offering is subject to final approval by the TSX Venture Exchange.