Fort Technology closes CAD 5 million convertible debenture placement

Fort Technology Inc. (TSXV: FORT) has completed a private placement of convertible debentures for gross proceeds of CAD 5 million, according to a statement from Jeffs' Brands Ltd (NASDAQ: JFBR, JFBRW), which holds a 75.02% stake in Fort.

The convertible debentures carry a 10% annual interest rate payable quarterly and mature two years from issuance. Holders can convert the principal amount into Fort units at CAD 0.185 per unit at any time until maturity. Each unit consists of one common share and one warrant to purchase an additional common share at CAD 0.185, with warrants exercisable for five years from issuance.

The placement represents a valuation of approximately CAD 27 million for Fort Technology, which manufactures and sells products for the pest control and remedial repair industry.

Jeffs' Brands and its chief executive officer participated in the placement, with the company purchasing CAD 2.2 million worth of convertible debentures. The transaction constitutes a related-party transaction under TSX Venture Exchange policies and Israeli Companies Law and received required approvals.

Fort will use the net proceeds for general working capital purposes and to support extending a loan under a previously disclosed loan agreement. The convertible debentures and securities issuable upon conversion are subject to holding period requirements under applicable securities laws and exchange rules.

Jeffs' Brands operates as a data-driven e-commerce company on the Amazon Marketplace, focusing on creating and acquiring products to develop market-leading brands.

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