BluSky Carbon Announces Amendment to Terms of Debenture Financing

Rhea-AI Summary

BluSky Carbon Inc. (CSE:BSKY) has announced amendments to its previously announced non-brokered private placement of unsecured convertible debentures. Under the new terms, the company will issue convertible debenture units, each consisting of a $1,000 principal amount debenture and 4,761.9 common share purchase warrants, aiming to raise up to $1,000,000 in gross proceeds.

Each warrant allows holders to acquire one common share at $0.30 within 2 years of closing. The debentures will mature in 18 months, bearing a 12.0% annual interest rate. Holders can convert debentures into common shares at $0.21 per share while any principal or interest remains outstanding.

Positive

• Secured potential funding of up to $1,000,000 through convertible debenture offering
• Attractive 12% annual interest rate may appeal to investors

Negative

• Potential dilution of existing shareholders through conversion of debentures and warrants
• High 12% interest rate indicates expensive debt financing
• Short maturity period of 18 months suggests immediate financing needs

OLD SAYBROOK, CT / ACCESS Newswire / February 14, 2025 / BluSky Carbon Inc. (CSE:BSKY) ("BluSky" or the "Company"), an innovative entry into the carbon removal clean technology sector, announces amendments to the terms of its previously announced non-brokered private placement (the "Convertible Debenture Offering") of unsecured convertible debentures of the Company. Under the amended terms, the Company will issue convertible debenture units (the "Convertible Debenture Units") with each Convertible Debenture Unit consisting of (i) a $1,000 principal amount convertible debenture of the Company (the "Debenture") and (ii) 4,761.9 common share purchase warrants of the Company (the "Warrants") for gross proceeds of up to $1,000,000. Each whole Warrant will entitle the holder thereof to acquire one common share of the Company (a "Common Share") at an exercise price of $0.30 at any time up to 2 years following the closing of the Convertible Debenture Offering (the "Closing Date"). The Debentures will mature 18 months from the closing of the Convertible Debenture Offering (the "Closing Date") unless otherwise agreed to by the holder and the Company, and will bear interest at a rate of 12.0% per annum. Each Debenture will be convertible, in whole or in part, at any time while any principal or interest remains outstanding, into Common Shares, at the option of the holder, at a price of $0.21 per Common Share.

This press release is not an offer to sell or the solicitation of an offer to buy the Convertible Debenture Units 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 Convertible Debenture Units being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such Convertible Debenture Units may not 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 Convertible Debenture Offering, the anticipated completion of the 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 key terms of BluSky Carbon's (BSKCF) convertible debenture offering in February 2024?

The offering includes $1,000 principal amount debentures with 4,761.9 warrants each, bearing 12% annual interest and maturing in 18 months. Debentures are convertible at $0.21 per share, and warrants are exercisable at $0.30 for 2 years.

How much funding is BluSky Carbon (BSKCF) seeking to raise through its convertible debenture offering?

BluSky Carbon is seeking to raise up to $1,000,000 in gross proceeds through this convertible debenture offering.

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

The conversion price for the debentures is $0.21 per common share.

What is the exercise price and duration of the warrants in BluSky Carbon's (BSKCF) offering?

The warrants have an exercise price of $0.30 per common share and can be exercised for up to 2 years following the closing date.