Permex Petroleum Corporation (CSE: OIL) has announced the successful closing of a US$2,000,000 private placement. The offering consisted of 2,000 convertible debenture units sold to investor Kent Lindemuth. Each unit included a US$1,000 convertible debenture and 393 common share purchase warrants.
The convertible debentures come with a one-year maturity period and a simple interest rate of 10%. They are convertible at a rate of US$2.54 per share. The accompanying warrants allow for exercise over five years at the same conversion price. The automatic conversion of debentures will be triggered if Permex completes a larger financing of at least US$7.5 million.
Following this transaction, Lindemuth holds US$5,000,000 in principal amount of debentures and 2,355,000 warrants, which translates to holding 81.71% of Permex shares on a partially-diluted basis. The funds raised will be directed towards supporting Permex’s general working capital requirements.
The securities issued in this offering are subject to a four-month hold period as per Canadian securities laws, alongside other applicable restrictions outlined under the U.S. Securities Act.