Humble & Fume To Secure $1.5M Via Private Placement

Humble & Fume Inc. HUMBF HMBL announced its intention to complete a non-brokered private placement of approximately 2,000 convertible debenture units of the company at a subscription price of CA$1,000 per debenture unit, for aggregate gross proceeds of approximately CA$2 million ($1.5 million).

Each debenture unit will be comprised of: one CA$1,000 principal amount secured subordinated convertible debenture of the company and 6,250 share purchase warrants of the company. The outstanding principal amount of each debenture shall be convertible at the option of the holder, at any time prior to maturity, into common shares of the company at a conversion price of CA$0.06 per common share. Each warrant shall be exercisable to acquire one common share at an exercise price of CA$0.08 for a period of 36 months from the closing date of the offering. The debentures will mature 36 months from the closing date, can be repaid at the option of the company, and will bear interest at a rate of 10% per annum, payable on the earlier of conversion, repayment, or maturity. The debentures will be secured by general security agreements over the company's assets, but subordinated to the company's senior secured lender.

In connection with the offering, the company may pay certain finders a cash commission and/or issue such finders non-transferable share purchase warrants, in accordance with Canadian Securities Exchange policies. The company intends to use the proceeds raised from the offering for payment of general working capital. The offering may close in tranches.

The offering is expected to close on or around June 9, 2023. The offering is subject to certain conditions including, but not limited to, receipt of all necessary approvals including the approval of the CSE.

Photo by Tim Foster on Unsplash .

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