Fort Technology raises CAD 5 million via convertible debentures

Fort Technology Inc. completed a private placement of convertible debentures for gross proceeds of up to CAD 5 million, representing a company valuation of approximately CAD 27 million, according to a statement from Jeffs' Brands Ltd (NASDAQ: JFBR, JFBRW), which holds a 75.02% equity stake in Fort.

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

Jeffs' Brands purchased CAD 2.2 million of the convertible debentures, making the transaction a related-party deal under TSX Venture Exchange policies and Israeli Companies Law. The company's chief executive officer also participated in the placement.

Fort will use proceeds for general working capital and to extend a loan under a separate agreement. The closing is expected to occur in tranches subject to regulatory approvals, including TSX Venture Exchange approval.

Separately, Fort entered into a loan agreement with U.K.-based EEH Ventures Limited, advancing an initial £2 million with an additional £1 million available after 12 months. The loans bear 7.5% annual interest and are repayable within three years. Fort holds an option to convert outstanding loan amounts and accrued interest into up to 25% of EEH's share capital, subject to exchange approval.

You May Also Be Interested In

• Robinhood Ventures Fund II opens at $22.50, IPO at $25
• Iridium Communications (IRDM) call put ratio 1.8 calls to 1 put as share price up 1.4%
• Planet Labs (PL) call put ratio 7.9 calls to 1 put with a focus on August calls