Spetz Announces Convertible Debenture and Warrant Offering

Rhea-AI Summary

Spetz Inc. (OTC PINK: DBKSF) has successfully completed a secured convertible debenture and warrant offering, raising $600,000 in total gross proceeds. Each debenture is valued at $1,000 and matures in nine months, accruing interest at 1% per month. Holders can convert debentures into shares at a conversion price of $0.05 per share. The share purchase warrants allow for subscriptions at the same price for three years. Proceeds will be allocated for general working capital purposes, boosting Spetz’s operational capability.

Positive

• Completed offering of convertible debentures and warrants raising $600,000.
• Attractive conversion price of $0.05 per share for debenture holders and warrant subscribers.
• Interest rate of 1% per month on debentures could provide consistent cash flow.

Negative

• The maturity period of nine months could pose liquidity challenges if not managed well.
• Dependence on the market price of common shares to trigger conversion could limit financing flexibility.

Spetz Announces Convertible Debenture and Warrant Offering

TORONTO, ON / ACCESSWIRE / February 1, 2023 / Spetz Inc. (the "Company" or "Spetz") (CSE:SPTZ), (OTC PINK:DBKSF) is pleased to announce that it has completed an offering of secured convertible debentures (the "Debentures") and common share purchase warrants ("Warrants") to arm's length parties for aggregate gross proceeds of $600,000.

The offering was structured as notional units consisting of one (1) $1,000 aggregate principal Debenture, maturing nine (9) months from the date of issuance (the "Maturity Date"), and 33,333.333 share purchase warrants of Spetz (the "Warrants"). Each Warrant entitles the holder thereof to subscribe for one common share in the capital of Spetz (a "Common Share") at an exercise price of $0.05 for a period of three (3) years from the date of issuance.

The Debentures shall bear interest at a rate of 1% per month, calculated monthly in advance, and shall be payable, in cash, quarterly. Spetz reserves the right to repay the Debentures, without penalty, in whole or in part, prior to the Maturity Date, on 30 days prior written notice to the holders of the Debentures in advance of repayment or redemption.

The principal amount of each Debenture shall be convertible, for no additional consideration, into Common Shares at the option of the holder at any time prior to the Maturity Date at a conversion price equal to $0.05 per Common Share (the "Conversion Price"). Spetz may require the holders of the Debentures to effect the conversion of the entire principal amount owed thereunder at the Conversion Price, upon giving the holders of the Debentures not less than 30 days prior written notice, in the event that and only for so long as on the date prior to the date of notice, the 15 day volume weighted average trading price of the Common Shares on the Canadian Securities Exchange (the "CSE") is equal or greater than $0.12.

The proceeds from the issuance of the Convertible Debentures will be used for general working capital purposes.

About Spetz Inc.

Spetz Inc. is a multinational technology company that operates Spetz, a global online, AI-powered marketplace platform that dynamically connects consumers to nearby top-rated service providers in around 30 seconds. Spetz is available in the USA, United Kingdom, Australia, and Israel. The Spetz vision is to reinvent how people around the world connect to services in their moment of need. Connecting them immediately with the top-matched service provider, for any need, anytime, anywhere.

Spetz website: www.spetz.app

Spetz Investor information: https://investor.spetz.app/

Company Contacts:

Ofir Friedman	Daniel Mogil
Director and Chief Marketing Officer	​​​​Investor Relations Manager
ofir@spetz.app	​​​​​Investors@spetz.app
	437-826-4012

NEITHER THE CSE, NOR THEIR REGULATION SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Cautionary Note Regarding Forward-looking Statements

Certain information herein constitutes "forward-looking information" as defined under Canadian securities laws, which reflect management's expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the Company. The words "plans", "expects", "does not expect", "scheduled", "estimates", "intends", "anticipates", "does not anticipate", "projects", "believes", or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "might", "occur", "be achieved", or "continue" and similar expressions identify forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.

Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements.

SOURCE: Spetz Inc.

View source version on accesswire.com:
https://www.accesswire.com/737781/Spetz-Announces-Convertible-Debenture-and-Warrant-Offering

FAQ

What is the significance of Spetz's recent convertible debenture offering?

Spetz raised $600,000 through secured convertible debentures and warrants, enhancing its working capital.

What are the terms of the convertible debentures issued by Spetz?

The debentures bear interest at 1% per month, are convertible at $0.05 per share, and mature in nine months.

How many shares can be purchased with the warrants from Spetz's offering?

Each warrant allows for the purchase of one common share at an exercise price of $0.05 over three years.

What will Spetz use the proceeds from the debenture offering for?

The proceeds will be used for general working capital purposes.