Gabriella's Kitchen Inc. (CNSX:GABY) announced a non-brokered private placement of up to 1,000 units at a price of CAD 1,000 per unit for aggregate gross proceeds of up to CAD 1,000,000 on January 20, 2019. Each unit consists of one secured convertible debenture in principal amount of CAD 1,000 and 500 common share purchase warrants. The debentures carry an interest rate of 15% per annum and are redeemable and/or convertible into common shares of the company at the option of the holder in whole or part from the date that is 90 days from the date of closing. The debentures will mature in 2 years from the date of closing and are convertible at a price equal to or the greater of CAD 0.37 per share or closing price of shares on the last trading day prior to date the company receives notice from the holder. Each warrant will entitle the holder to purchase a common share at a price of CAD 0.37 for a period of 2 years from the date of closing. The transaction will include participation from directors, officers, and insiders of the company. All securities issued in the transaction are subject to a hold period of four months and one day. The closing of the transaction is subject to customary regulatory requirements including acceptance from Canada Securities Exchange.