Pool Safe Inc. announced a non-brokered private placement of up to 1,500, 8% unsecured convertible debenture units at a price of CAD 1,000 per unit for gross proceeds of CAD 1,500,000 on July 13, 2022. Each unit consists of one CAD 1,000 face value debenture, and 28,500 common share bonus warrants. The debentures shall mature thirty-six months from the date of the issuance, and shall bear interest at a rate of eight percent per annum.

Each warrant entitles the holder to acquire one common share at an exercise price of CAD 0.05 for a period of 36 months from the closing date. If at any time the common shares trade at higher than CAD 0.15 per share on a volume weighted average basis for a period of 20 consecutive trading days, the company will have the right to accelerate the expiry date of the warrants by providing the holder with written notice of an early expiry event. The period whereby the holder is entitled to exercise any portion of outstanding warrants shall expire 30 calendar days following the date on which the company provides early expiry notice to holders.

Furthermore, if a portion of the debentures are repaid during the first year following the closing date, a proportional number of the warrants shall have their term reduced to the later of one year from the closing date and 30 days from repayment of that portion of the debenture. The lead investor of the transaction shall have their warrants expire on the date that is 37 months after the closing date. The lead investor shall also have an early expiry date of 60 calendar days following the date on which the company provides early expiry notice.

All securities are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation. The company may pay finders' fees of 8%. The transaction is subject to receipt of all required regulatory approvals including the approval of the Exchange.