Chemistree Technology Inc (CSE:CHM) (OTCMKTS: CHMJF) is set for an offering of convertible debenture units and has appointed broker Canaccord as the sole bookrunner.
In a short form prospectus, the firm said each debenture unit will consist of one 10% unsecured convertible debenture of the company worth $1,000 with interest payable semi-annually in arrears on June 30 and December 31 of each year, beginning June 30 this year.
The debentures will mature three years from the date of issue and the debenture units will also consist of 2,000 company share purchase warrants expiring 36 months after the date of issue.
Each debenture is convertible at $0.50 per share subject to certain adjustments, while each warrant allows the holder one share at an exercise price of $0.70 per share until the expiry date.
The debentures and the warrants comprising the debenture units will separate immediately upon the closing of the offering.
There is no minimum amount of funds that must be raised under the offering, the company noted.
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