TORONTO, CULT Food Science Corp. ("CULT" or the "Company") (CSE: CULT) (OTC: CULTF) (FRA: LN00), a disruptive food technology platform pioneering the commercialization of lab grown meat and cellular agriculture to reshape the global food industry, is pleased to announce that it has closed a non-brokered private placement led by Plaza Capital (the "Lead Investor") of 375 convertible debenture units of the Company (the "Convertible Debenture Units") under which the Company has raised gross proceeds of $375,000 (the "Offering"). Each Convertible Debenture Unit is comprised of $1,000 principal amount of senior secured convertible debentures of the Company (the "Convertible Debentures") and 20,000 common share purchase warrants of the Company (the "Warrants"). The Lead Investor is an arm's length party to the Company.
The principal amount of each Convertible Debenture is convertible into common shares of the Company (the "Common Shares"), for no additional consideration, at the option of the holder at a conversion price of $0.05 per Common Share (the "Conversion Price"). In the event the Company issues additional shares or other securities convertible into shares at a price lower than the Conversion Price, the Conversion Price will be adjusted down to that same price.
The Convertible Debentures bear interest at a rate of 12.0% per annum, paid monthly in cash on the last business day of each calendar month. Any accrued but unpaid interest is convertible into Common Shares at the option of the holder at the Conversion Price at any time. The Convertible Debentures mature on June 19, 2025. On the maturity date, all principal amount outstanding together with any unpaid interest on the Convertible Debentures will be repaid by the Company in cash. The Company has the right to prepay or redeem a part or the entire principal amount of the Convertible Debentures at par plus accrued and unpaid interest at any time by providing a minimum of 10 days of redemption notice prior to the redemption date.
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