Tenet Secures Credit Facility of Up to $5M and Terminates Private Placement Financing

Rhea-AI Summary

Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) has secured a credit facility of up to $5 million from Petiana Capital Inc. (PCI) and terminated its ongoing private placement financing. The credit facility allows Tenet to drawdown up to $5 million over 12 months, with a 10% annual interest rate and 24 months to repay each drawdown. PCI will receive one warrant per dollar advanced, exercisable at $0.25 or a 25% premium to Tenet's share price.

Tenet plans to use the funds to market its Business Hub, complete the ie-Pulse platform, and launch a marketing campaign for ie-Pulse data plans. CEO Johnson Joseph views this as a significant win for the company and shareholders, avoiding potential dilution from the terminated financing. Tenet aims to achieve its first Canadian data plan sales in the second half of 2023.

Positive

• Secured credit facility of up to $5 million, providing necessary capital
• Avoided potential dilution by terminating private placement that could have issued 33.3M shares and warrants
• Flexible drawdown terms with 24-month repayment period for each advance
• Funds allocated for marketing Business Hub and completing ie-Pulse platform
• Company expects first Canadian data plan sales in late Q3 or early Q4 2023

Negative

• 10% annual interest rate on credit facility drawdowns
• Issuance of warrants for each dollar borrowed, potentially dilutive if exercised
• Credit facility guaranteed by assets pledged by Tenet shareholders

Toronto, Ontario--(Newsfile Corp. - July 22, 2024) - Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) ("Tenet" or the "Company"), an innovative analytics service provider, owner and operator of the Cubeler® Business Hub, today announced that it has secured a credit facility of up to $5,000,000 from Petiana Capital Inc. ("PCI"), and has terminated its ongoing private placement of units of convertible debentures and warrants whereby the Company was looking to raise an additional $5,000,000 (the "Financing").

The credit facility agreement between Tenet and PCI allows Tenet to drawdown up to $5,000,000 over a twelve-month period by sending drawdown notices to PCI (the "Credit Facility"). No drawdown notice can exceed $500,000 and there must be at least five business days between each drawdown notice. Tenet will pay PCI interest at an annual rate of 10% on any amount drawn from the Credit Facility and will have up to twenty-four months from the date of the drawdown notice to repay the amount advanced by PCI. For each dollar advanced by PCI under the terms of the agreement, PCI will receive one warrant to purchase one common share of Tenet at the greater of $0.25 or the price that represents a 25% premium to Tenet's share price at the time of issuance of the drawdown notice. The Credit Facility is guaranteed by assets pledged by a collection of Tenet shareholders in a separate collateral agreement between PCI and the shareholders.

The Company plans to use the funds available to it from the Credit Facility to: 1) market the Business Hub following the launch of its networking and advertising modules, which will make more data available for its ie-Pulse industrial index offering; 2) complete the ie-Pulse platform; and 3) launch the ie-Pulse marketing campaign to have the first data plans sold in either late Q3 or early Q4.

"We couldn't be more excited about today's announcement," commented Tenet President and CEO Johnson Joseph. "It's no secret that capital has been hard to come by lately in the small cap tech sector. We were working on a Financing that, when closed, would have seen the Company potentially have to issue an additional 33.3M shares and 33.3M warrants. Being able to access the same amount of capital with only potentially having to issue 5M warrants is a big win for the Company and its shareholders. With this facility in place and the termination of the Financing, we are now able to complete our forecasts for 2024 and 2025 and activate our long-awaited investor communication plan, which will include the unveiling of our new website in the coming weeks. Our entire focus can finally be devoted to having our first Canadian data plan sales in the second half of this year and create value for our shareholders."

About Tenet Fintech Group Inc.:

Tenet Fintech Group Inc. is the parent company of a group of innovative financial technology (Fintech) and artificial intelligence (AI) companies. All references to Tenet in this news release, unless explicitly specified, include Tenet and all its subsidiaries. Tenet's subsidiaries offer various analytics and AI-based products and services to businesses, capital markets professionals, government agencies and financial institutions either through or leveraging data gathered by the Cubeler® Business Hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members. Please visit our website at: https://www.tenetfintech.com/.

For more information, please contact:

Tenet Fintech Group Inc.

Mayco Quiroz, Chief Operating Officer
514-340-7775 ext.: 510
investors@tenetfintech.com

CHF Capital Markets
Cathy Hume, CEO
416-868-1079 ext.: 251
cathy@chfir.com

Follow Tenet Fintech Group Inc. on social media:
X: @Tenet_Fintech
Facebook: @Tenet
LinkedIn: Tenet
YouTube: Tenet Fintech

Forward-looking information

Certain statements in this press release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Tenet to be materially different from the outlook or any future results, performance or achievements implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements in this news release include, but are not limited to, holding company with significant operations in China; general economic and business conditions, including factors impacting the Company's business in China such as pandemics and COVID-19; legislative and/or regulatory developments; Global Financial conditions, repatriation of profits or transfer of funds from China to Canada, operations in foreign jurisdictions and possible exposure to corruption, bribery or civil unrest; actions by regulators; uncertainties of investigations, proceedings or other types of claims and litigation; timing and completion of capital programs; liquidity and capital resources, negative operating cash flow and additional funding, dilution from further financing; financial performance and timing of capital; and other risks detailed from time to time in reports filed by Tenet with securities regulators in Canada. Reference should also be made to Management's Discussion and Analysis (MD&A) in Tenet's annual and interim reports, Annual Information Form, filed with Canadian securities regulators and available via the System for Electronic Document Analysis and Retrieval (SEDAR+) under Tenet's profile at www.sedarplus.ca, for a description of major risk factors relating to Tenet. Although Tenet has attempted to identify certain factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements reflect information as of the date on which they are made. The Company assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event the Company does update any forward-looking statement, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/217267

FAQ

What is the amount of the credit facility secured by Tenet Fintech Group (PKKFF) on July 22, 2024?

Tenet Fintech Group secured a credit facility of up to $5 million from Petiana Capital Inc. on July 22, 2024.

What are the terms of the credit facility for Tenet Fintech Group (PKKFF)?

The credit facility allows Tenet to drawdown up to $5 million over 12 months, with a 10% annual interest rate, 24 months to repay each drawdown, and one warrant issued per dollar advanced.

How does Tenet Fintech Group (PKKFF) plan to use the funds from the credit facility?

Tenet plans to use the funds to market its Business Hub, complete the ie-Pulse platform, and launch a marketing campaign for ie-Pulse data plans.

When does Tenet Fintech Group (PKKFF) expect its first Canadian data plan sales?

Tenet expects to achieve its first Canadian data plan sales in the second half of 2023, either in late Q3 or early Q4.