Pineapple Financial Inc. announced that it has entered into an equity purchase agreement with new investor Brown Stone Capital Ltd to issue common shares for the gross proceeds of CAD 15,000,000, a convertible promissory note for the gross proceeds of CAD 300,000; aggregate gross proceeds of CAD 15,300,000 on May 16, 2024. The company also has agreed to issue warrants to purchase 1,000,000 common shares with an exercise price of $5 per share and term of nine months from the date of issuance. The Note is convertible into the Company?s common shares, no par value, subject to the terms and conditions therein.

The note bears 8% per annum interest rate and a maturity date of twenty four months from the date of the issuance. The EPA Shares will be issued without prior registration in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act, and Rule 506(b) of Regulation D thereunder.