CALGARY, Alberta, March 02, 2026 (GLOBE NEWSWIRE) -- Canadian Premium Sand Inc. ("CPS" or the "Company") (TSXV:CPS) is pleased to announce a non-brokered private placement (the "Offering") of secured convertible debentures (the "Convertible Debentures"). Pursuant to the Offering, the Company has received subscriptions for the Convertible Debentures totaling approximately $1 million from those who hold the Company's outstanding $1.975 million aggregate principal amount of secured debentures due February 26, 2027 (the "Outstanding Convertible Debentures") as well as from certain other strategic investors. The proceeds of the Offering will be used for general working capital purposes as it continues to advance strategic initiatives with the continued support of its significant shareholders.
The Convertible Debentures bear interest at 12% per annum, compounded quarterly from the date of issuance and payable in arrears on maturity. The Convertible Debentures mature on February 26, 2027 (the "Maturity Date"). The principal amount and accrued interest thereon are convertible into common shares ("Common Shares"), at the holder's option, at a price of $0.15 per Common Share, subject to adjustment in certain events, at any time prior to the Maturity Date.
As a condition to the completion of the Offering, the Company has agreed to amend the conversion price of the Outstanding Convertible Debentures from $0.75 to $0.15 per Common Share and make certain other amendments so that the Outstanding Convertible Debentures will be on the same terms as the Convertible Debentures.
The Convertible Debentures are a secured obligation of the Company and rank equally with the Outstanding Convertible Debentures and senior to all present and future indebtedness that is not senior indebtedness, which will involve the grant by the Company, of a fixed and floating charge over all of its present and after acquired property.
The Convertible Debentures may be redeemed prior to their Maturity Date by the Company, in whole or in part, at any time the daily volume weighted average trading price is $0.24 per Common Share or more over a 30 consecutive trading day period. The Convertible Debentures may be redeemed for either a cash payment or by issuing Common Shares at a deemed price of $0.15 per Common Share that is equal to all outstanding principal and accrued interest up to the redemption date or any combination thereof, on not less than 30 days' notice to the Convertible Debenture holders. Upon a change of control of the Company prior to the Maturity Date, unless the holder elects to convert the Convertible Debentures into Common Shares, the Company is required ...
