Beckett's Secures US$500,000 in Convertible Debenture Financing and Files 2025 Fiscal Year-End Results

Rhea-AI Summary

Beckett's (TNYBF) announced a secured convertible debenture financing to raise US$500,000 through 5-year, 8% debentures convertible at CA$0.025 per share (subject to a planned share consolidation to set post-consolidation conversion price ≥ CA$0.05). The company may issue up to US$1.0M total and expects to close about May 7, 2026.

Proceeds are for general working capital, inventory production and marketing. Insiders intend to buy US$30,000 of debentures. The company also filed audited financial statements and MD&A for year ended December 31, 2025.

Positive

• Secured financing of US$500,000 via 5-year 8% debentures
• Debentures convertible into common shares at CA$0.025 (pre-consolidation)
• Company filed audited 2025 financial statements and MD&A

Negative

• Conversion prohibited until share consolidation raises post-consolidation price to ≥ CA$0.05
• Insiders purchasing US$30,000 creates a related party transaction
• Potential dilution from up to US$1.0M additional debentures

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Toronto, Ontario and Los Angeles, California--(Newsfile Corp. - May 1, 2026) - Beckett's Inc. (CSE: BKTS) ("Beckett's" or the "Company") announces that it intends to complete a secured debt financing raising gross proceeds of US$500,000 by way of issuance of 5-Year 8% Secured Convertible Debentures (the "Debentures").

The principal amount of the Debentures will bear interest at a rate of 8% per annum and will have a term of five (5) years. Subject to regulatory approval, interest on the principal amount outstanding shall be paid annually in common shares of the Company ("Common Shares") at a deemed issue price equal to the lowest price permissible by the rules and policies of the CSE. At the option of the holder, the principal amount of the Debentures may be converted into Common Shares at a conversion price of CA$0.025 per Common Share (the "Conversion Price"), subject to customary adjustments. Notwithstanding the foregoing, the holders of Debentures are prohibited from converting until the Company has completed a share consolidation such that the post-consolidation conversion price is CA$0.05 or higher. The Company intends to ask shareholders to approve a share consolidation at the next annual meeting of shareholders.

The principal amount of the Debentures shall convert automatically into common shares at the Conversion Price if the 20-day volume weighted average trading price of the Common Shares is CA$0.05 or higher (subject to adjustment upon completion of a share consolidation).

The Company intends to use the net proceeds from the financing for general working capital purposes, including inventory production and marketing initiatives to support its sales and distribution activities. "This raise enables us to exceed current direct-to-consumer and retailer demand as we work to expand our distribution footprint," said Beckett's CEO Larry Weintraub. "We look forward to achieving growth in the quarters ahead," he added.

The financing is being conducted on a non-brokered basis and may be completed in one or more tranches. The Company reserves the right to issue additional Debentures of up to US$1 million in principal. It is expected that US$30,000 of Debentures will be purchased by insiders.

The participation by insiders in the financing constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 on the basis that the fair market value of the insider participation does not exceed 25% of the Company's market capitalization.

All securities issued in connection with this offering, including the Common Shares issuable upon conversion of the Debentures, will be subject to a statutory hold period of four (4) months and one (1) day from the date of issuance, in accordance with applicable Canadian securities laws.

The Company intends to close the financing on or about May 7, 2026. Completion of the financing remains subject to the approval of the Canadian Securities Exchange.

The Company has also filed its audited annual financial statements for the year ended December 31, 2025 and annual MD&A. The financial statements and MD&A can be found on the Company's profile at www.sedarplus.ca.

Securities Law Matters

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any applicable state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. Any offering of securities in the United States is being made on a private placement basis pursuant to one or more exemptions from the registration requirements of the U.S. Securities Act.

About Beckett's Non-Alcoholic Cocktails & Spirits

Beckett's is an award-winning non-alcoholic beverage brand offering premium cocktails and spirits crafted with natural flavours. Shaped by the vision of industry veterans behind brands like Cutwater, Golden Road, and Elysian Brewing, Beckett's delivers bold, cocktail-inspired taste without the alcohol.

The portfolio includes Beckett's Tonics®, sparkling ready-to-drink takes on cocktail classics such as the Moscow Mule, Paloma, Margarita, and Gin & Tonic, as well as Beckett's '27® non-alcoholic spirits: Coconut Rum, Cinnamon Whiskey, Amaretto, and Coffee Liqueur. Beckett's products are vegan, gluten-free, and low in sugar and calories.

Beckett's products are available at BevMo!, Total Wine & More, Walmart.com, Amazon.com, DrinkBecketts.com, and select independent retailers, bars, restaurants, resorts, and nightclubs nationwide.

Beckett's believes in celebrating life on your terms, because just like its drinks, you're Too Good To Be Wasted™.

Learn more at www.DrinkBecketts.com.

Forward-Looking Statements

This news release contains forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are statements and information that are not historical facts but instead include financial projections and estimates, statements regarding plans, goals, objectives and intentions, statements regarding the Company's expectations with respect to its future business and operations, management's expectations regarding growth and phrases containing words such as "ongoing", "estimates", "intends", "expects", "anticipates", or the negative thereof or any other variations thereon or comparable terminology referring to future events or results, or that events or conditions "will", "may", "could", or "should" occur or be achieved, or comparable terminology referring to future events or results. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, political risks, changes and uncertainties relating to relevant federal and state legislation and regulations, the availability, and costs, of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in input costs, and changes in consumer tastes and preferences. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law. Products, formulations, and timelines outlined herein are subject to change at any time.

For further information, please contact:

Beckett's Inc.
Larry Weintraub, CEO
info@drinkbecketts.com (CSE: BKTS)
(323) 379-3249
X: @drinkbecketts
Instagram: @drinkbecketts
www.drinkbecketts.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/295365

FAQ

What are the terms of Beckett's (TNYBF) US$500,000 debenture financing?

The financing is a 5-year, 8% secured convertible debenture offering US$500,000 in gross proceeds. According to the company, principal bears 8% interest, convertible at CA$0.025 per share, with automatic conversion if 20-day VWAP reaches CA$0.05 (subject to consolidation).

When will Beckett's (TNYBF) debenture financing close and is it conditional?

Beckett's expects to close the financing on or about May 7, 2026, subject to CSE approval. According to the company, the offering may be completed in one or more tranches and completion remains conditional on regulatory approval.

How will Beckett's (TNYBF) use the proceeds from the debenture financing?

Proceeds are intended for general working capital, including inventory production and marketing initiatives. According to the company, funds will support direct-to-consumer and retailer demand and expansion of the distribution footprint.

What insider participation is disclosed in Beckett's (TNYBF) financing?

Insiders are expected to purchase US$30,000 of the debentures, creating a related party transaction. According to the company, it will rely on MI 61-101 exemptions because the insider participation is under 25% of market capitalization.

Will securities from Beckett's (TNYBF) financing be subject to a hold period?

Yes. All securities, including shares issuable on conversion, will be subject to a statutory hold period of four months and one day. According to the company, this is in accordance with applicable Canadian securities laws.