January 29, 2020 – Relay Medical Corp. (“Relay” or the “Company”) (CSE: RELA, OTC: RYMDF, Frankfurt: EIY2), a developer of MedTech innovation, is pleased to announce that the Company completed a financing of $945,000 through the issuance of secured convertible debentures (the “Debentures”). The Debentures will mature on the first anniversary of issuance (the “Maturity Date”) and bear interest at a rate of ten percent (10%) per annum which shall accrue from the date the Debentures are issued until the Maturity Date. Each Debenture shall be convertible into common shares in the capital of the Company (each, a “Common Share”) at a price of $0.18 per Common Share. The lender will also receive a half of a Common Share purchase warrant (each, a “Debenture Warrant”) for each $0.18 principal amount of the Debentures, resulting in an aggregate of 2,625,001 Debenture Warrants being issued. Each Debenture Warrant will entitle the holder to acquire one Common Share at an exercise price of $0.23 per Common Share for a period of two years from the date of issuance.
In connection with the Offering, certain shareholders of the Company agreed to loan 5,250,000 free-trading Common Shares to the holders of the Debentures, in exchange for a half of a Common Share purchase warrant (each whole warrant, a “Warrant”) for each Common Share. Each whole Warrant will entitle the holder to acquire one Common Share at an exercise price of $0.20 per Common Share for a period of two years from the date of issuance.
In connection to the Offering, finder’s fees were paid equal to 8% of the proceeds raised and an aggregate of 420,000 finder warrants (the “Finder Warrants”) were issued to the Finder, each Finder Warrant entitling the holder to acquire one Common Shares at an exercise price of $0.18 per Common Share for a period of two years from the date of issuance.
In addition, the Company announces that it has entered into debt conversion agreements with arm’s length and non-arm’s length creditors, pursuant to which the Company has settled an aggregate of $797,500 of indebtedness through the issuance of 4,430,555 Common Shares at a price of $0.18 per Common Share. The Common Shares issued pursuant to the debt settlement are subject to a four-month hold period and completion of the transaction remains subject to final acceptance of the Canadian Securities Exchange.