Maritime Launch Services Secures Financing Approval and Extends Debenture for Two Years

By
Joe Killer
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HALIFAX, Nova Scotia, February 18, 2025–(BUSINESS WIRE)–Maritime Launch Services Inc. (Cboe CA: MAXQ, OTCQB: MAXQF) (hereafter referred to as “the Company“) is excited to announce that it has finalized agreements and received regulatory approval for its previously disclosed financing, which is expected to yield about $1,600,000 in cash proceeds at a price of $0.05 per share. Of this amount, $331,525 was previously provided to the Company in the last five months by existing shareholders as short-term, interest-free loans. Associated finder’s fees related to this financing amount to $128,000, which will be compensated with shares ($0.05 per share totaling 2,560,000) along with 2,560,000 broker warrants at a strike price of $0.05 per warrant, expiring in two years as further finder’s fee.

Additionally, as part of this financing, the Company anticipates issuing 4,170,000 shares ($208,500 at $0.05 per share) to certain officers, directors, and employees as remuneration for previously unpaid fees and salaries from 2024, pending regulatory approval.

The total number of shares to be issued under the equity financing plan, including fees, is approximately 38,730,000 (plus 2,560,000 warrants).

Portions of the proceeds will be allocated to redeem previously issued debentures (details below), with the remainder designated for vendor payments and ongoing operational costs.

Debenture Extension

The Company has received conditional regulatory approval to consummate the two-year extension agreement (previously announced as an agreement in principle on November 13, 2024) with the holders of its outstanding convertible debentures dated May 7, 2021 (as amended) and those dated December 7, 2023. This extension will postpone the maturity date of all outstanding convertible debentures from December 7, 2024, to December 7, 2026.

As a condition of this extension, the Company will utilize $500,000 of the financing proceeds to settle $500,000 of the outstanding convertible debentures according to their terms. Furthermore, the Company will issue 4,830,105 common shares from Treasury to the debenture holders as a fee for the extension.

On or around February 18, 2025, the Company will issue 2,706,978 shares as remuneration for $324,837 of payment-in-kind (“PIK”) interest due as of December 7, 2024 (based on a share price of $0.12) in accordance with the pre-extension convertible debenture terms.

The combined total of shares issued for outstanding PIK interest and the extension fee will amount to 7,537,083.

The cash interest rate remains at 10% with an additional PIK interest rate of 5%, payable in common shares. All cash interest will accrue annually, with all principal and cash interest payable upon maturity of the convertible debentures. The 5% PIK interest, which is payable in common shares, is set to be paid semi-annually, commencing June 7, 2025, and continuing every six months thereafter until maturity. Under the previous terms of the convertible debentures, the conversion rate for all principal and interest will be adjusted to $0.05, aligning with the pricing of the equity financing.