Stardust Solar closes $641,000 convertible debenture placement

Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) has closed a non-brokered private placement of senior secured convertible debenture units with KW Capital Partners Ltd., raising $641,000 in gross proceeds.

The company issued 641 debenture units at $1,000 each. Each unit consists of one senior secured convertible debenture and 13,333 common share purchase warrants, with each warrant exercisable at $0.10 per common share for 24 months following closing.

The debentures mature on February 17, 2028, and carry an interest rate of 12% per annum, payable in cash. In the event of a default, the interest rate rises to 25% per annum. The principal is convertible into common shares at $0.075 per share during the first year and $0.10 per share thereafter, subject to a floor price of $0.05 per share.

Stardust Solar said it intends to use the net proceeds to repay outstanding principal and accrued interest on senior secured convertible debentures previously issued on February 17, 2026. Securities issued in the offering are subject to a statutory hold period expiring February 15, 2027.

A blocking provision prevents the holder from acquiring beneficial ownership exceeding 10% of issued and outstanding common shares through conversion or warrant exercise.

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