DCS Announces USD $400,000 of Convertible Debenture Financing

Rhea-AI Summary

Direct Communication Solutions (DCSX) has announced a convertible debenture financing initiative to raise up to USD $400,000. The unsecured convertible debentures have a minimum subscription amount of USD $25,000 per debenture and can be converted into common stock at USD $2.25 per share. The debentures come with a 10% annual interest rate and will mature one year from the closing date. They will automatically convert to common stock within five business days of the company listing on a major U.S. exchange like NASDAQ or NYSE American. The proceeds will be used for working capital and general corporate purposes.

Positive

• Secured additional working capital through $400,000 financing
• 10% interest rate provides attractive terms for investors
• Automatic conversion clause tied to potential major U.S. exchange listing indicates possible uplist plans

Negative

• Potential dilution for existing shareholders upon conversion
• Relatively high 10% interest rate indicates higher cost of capital
• Unsecured nature of debentures poses higher risk for investors

San Diego, California--(Newsfile Corp. - May 12, 2025) - Direct Communication Solutions, Inc. (OTC Pink: DCSX) (CSE: DCSI) (FSE: 7QU0) a leading provider of information technology solutions for the Internet of Things (IoT) market, announces its offering of unsecured convertible debentures (the "Debentures") (minimum subscription amount of US$25,000 (CDN$34,457.50) per Debenture) raising up to USD $400,000 (CDN$552,000) (the "Offering"). Pursuant to the terms of the Debentures, the subscribers may convert all or part of the principal amount outstanding under the Debentures into shares of common stock of the Company. The Debentures are convertible into shares of common stock of the Company (the "Shares") at USD$2.25 (CDN$3.10). The Debentures have a maturity date of the 1^st anniversary of the closing date, subject to an automatic conversion into shares of common stock on the business day designated by the Corporation not to exceed five (5) business days following the effective date of listing of the shares of common stock on a recognized stock exchange in the United States, including but not limited to NASDAQ or the NYSE American; the Debentures bear an interest rate of 10% per annum, payable at the end of the one (1) year term or upon conversion of the Debenture.

The Debentures are unsecured and the use of proceeds from the Offering shall be used for working capital and general corporate purposes.

The Company may pay finder's fees to eligible finders in cash or warrants or a combination of both.

The conversion rate is based on US$1.00 to CDN$1.38 as per the Bank of Canada conversion rate.

About DCS

DCS is a technology solutions integrator focusing on connecting the Internet of Things. We provide real solutions that solve real problems. Our software applications and scalable cloud services collect and assess business-critical data from all types of assets. DCS is headquartered in San Diego, California and is publicly traded on the OTCQX ("DCSX"), Canadian Securities Exchange ("DCSI") and Frankfurt Stock Exchange ("7QU0"). For more information, visit www.dcsbusiness.com. DCS and the DCS logo are among the trademarks of DCS in the United States. Any other trademarks or trade names mentioned are the property of their respective owners.

Contacts:

Bill Espley, Director 
bespley@dcsbusiness.com
604-630-3072

Chris Bursey, CEO
cbursey@dcsbusiness.com
858-525-2483

Forward-Looking Statements

This release contains forward-looking statements, which reflect management's current views of future events and operations. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially. We believe that these potential risks and uncertainties include, without limitation: the ongoing COVID-19 pandemic, the Company's dependence on third-party manufacturers, suppliers, technologies and infrastructure; risks related to intellectual property; industry risks including competition, online security, government regulation and global economic conditions; and the Company's financial position and need for additional funding, Statements in this release should be evaluated in light of these factors. These risk factors and other important factors that could affect our business and financial results are discussed in our Management's Discussion and Analysis, periodic reports and other public filings which are available on SEDAR+ at www.sedarplus.ca and posted with the OTC Disclosure and News Service. DCS undertakes no duty to update or revise any forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251763

FAQ

What is the conversion price for DCSX's convertible debentures announced in May 2025?

The convertible debentures can be converted into DCSX common stock at USD $2.25 (CDN $3.10) per share.

How much is DCSX planning to raise through the convertible debenture offering?

DCSX is planning to raise up to USD $400,000 (CDN $552,000) through the convertible debenture offering.

What is the interest rate and maturity period for DCSX's May 2025 convertible debentures?

The convertible debentures have a 10% annual interest rate and a maturity period of one year from the closing date.

What will DCSX use the proceeds from the convertible debenture offering for?

The proceeds from the offering will be used for working capital and general corporate purposes.

What is the minimum investment amount for DCSX's convertible debentures?

The minimum subscription amount is USD $25,000 (CDN $34,457.50) per debenture.