SHARC Energy Secures $2 Million Debenture from Sole Subscriber



Lynn Mueller, President and CEO of SHARC Energy

­SHARC International Systems Inc. is pleased to announce that, further to its news release dated June 24, 2024, the Company has closed a non-brokered private placement of debenture units of the Company (“DebentureUnits”) at a price of $1,000 per Debenture Unit, for aggregate gross proceeds of $2,000,000 (the “Offering”). The Company would like to thank and extend its gratitude to the sole subscriber in this Offering.

"The ability of SHARC Energy's systems to use wastewater as a thermal source for heating & cooling is unparalleled; combine that with water savings and the returns to clients are multiplied. In the green technology space, there is no other company that can reuse waste heat from a 100% consistent source; the possibilities are endless, " said Lynn Mueller, President and CEO of SHARC Energy.

Each Debenture Unit will be comprised of: (i) a $1,000 principal amount of 8.0% unsecured debenture of the Company (the “Debenture”); and (ii) 5,000 common share purchase warrants of the Company (the “Warrants”). Each Warrant will entitle the holder thereof to acquire one common share in the capital of the Company (each, a “Share”) at an exercise price of $0.20 per Share for a period of 36 months from the date of issuance.   The Debentures will bear interest from their issue date at 8.0% per annum calculated and payable annually in arrears on December 31 of each year and will mature three (3) years following the closing of the Offering (the “Maturity Date”). The Debentures are unsecured and will rank pari passu in right of payment of principal and interest with all future unsecured indebtedness of the Company. The Debenture, including any accrued and unpaid interest, will be repayable in part or in full on any one or more occasions without penalty at any time prior to the Maturity Date at the option of the Company.

The Warrants are subject to a ten percent (10.0%) blocker provision, which restricts the exercise of any underlying Warrants in the event such exercise would result in the securityholder holding ten percent (10.0%) or more of the issued and outstanding Shares at such time.

Mr. Mueller continues, “This financing provides the Company the working capital flexibility required to continue the growth of its pipeline and conversion to purchase orders. SHARC Energy’s equipment is best in class, providing exclusive access to the largest reservoir of thermal energy in the world! We thank the sole subscriber for their continued support.”

In connection with the Offering, the Company paid to a certain eligible non-arm’s length finder: (i) a cash fee of $160,000 and (ii) issued to such finder, 800,000 compensation warrants of the Company (the “Compensation Warrants”). Each Compensation Warrant entitles the holder thereof to purchase one (1) Share of the Company at an exercise price of $0.20 for a period of three (3) years following the date of issuance.

The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes supporting the continued growth of its Sales Pipeline and conversion to Sales Order Backlog (purchase orders)

The Debentures, Warrants and Compensation Warrants will not be listed or posted for trading on any stock exchange. All securities issued in connection with the Offering will be subject to a statutory hold period of four (4) months plus one (1) day from the date of issuance.