DEEPSPATIAL ANNOUNCES CLOSING OF FINAL TRANCHE OF CONVERTIBLE DEBENTURE FINANCING

Deepspatial Inc. has closed the final tranche of a non-brokered private placement of unsecured convertible debentures of the company for gross proceeds of $102,750.

The debentures will bear interest at 10 per cent per annum from the date of issuance, payable upon the earlier of the maturity date (as defined below) or the date of any conversion thereof. The debentures will mature on the date that is two years from the date of issuance.

Until the maturity date, the holders of the outstanding debentures may convert the principal into units of the company at a conversion price of 15 cents per unit, with each unit consisting of one common share in the capital of the company and one-half of one share purchase warrant, with each warrant exercisable into one share at a price of 30 cents per warrant share for a period of two years from the date of the closing.

In the event that the shares close at a trading price of at least 30 cents for 10 consecutive trading days, the company may cause the debentures to be converted into units at the conversion price upon the company delivering a notice to the debenture holders not less than a minimum of 30 days and a maximum of 60 days prior to the conversion date specified in such forced conversion notice.

All securities issued in connection with the final tranche will be subject to a hold period expiring July 25, 2023. The proceeds of the financing are for general working capital.