Forward Water Technologies Completes Non-Brokered Private Placement of Secured Debentures

Forward Water Technologies Corp. (TSXV:FWTC) has successfully closed the issuance of $225,000 worth of debentures. This includes $100,000 in secured convertible debentures with a 20% interest rate, commencing 120 days following the signing of the definitive agreement related to its proposed merger with Fraser Mackenzie Accelerator Corp. (FMAC). If the merger is completed, these debentures will convert into units of Forward Water at a conversion price of $0.145 per unit. If not, the debentures will remain non-convertible and mature on December 31, 2024.

The remaining $125,000 of non-convertible debentures also mature on December 31, 2024. Fraser Mackenzie Accelerator Corp. acquired $25,000 of these debentures, while FirstLine Venture Partners Corporation and Sustainable Chemistry Alliance obtained the remaining $200,000. The financing is intended for general working capital purposes.

The issued securities will be subject to a four-month hold period expiring on September 25, 2024. Notably, FirstLine and SCA, holding over 20% shares of FMAC, are considered related parties, making their participation a "related party transaction" under MI 61-101. The company has relied on specific exemptions for this transaction, approved unanimously by its board of directors.

Additionally, the deadline for signing the definitive agreement for the proposed business combination with FMAC has been extended to June 4, 2024.