Stardust Solar raises $1 million through convertible debenture offering

Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) completed a $1 million private placement through the issuance of 1,000 senior secured convertible debenture units at $1,000 per unit to Plaza Capital.

Each debenture unit consists of one convertible debenture with a principal value of $1,020 and 6,800 common share purchase warrants. The debentures mature on February 17, 2028, and carry a 10% annual interest rate, increasing to 25% upon default.

The debentures can be converted into common shares at $0.15 per share at the holder's option. The warrants allow the purchase of common shares at $0.21 per share for 24 months following the closing.

Both the conversion price and warrant exercise price are subject to adjustment if the company issues securities at lower prices, with a floor price of $0.115 for both. The terms include anti-dilution provisions that prevent the holder from acquiring more than 10% of outstanding shares through conversion or exercise.

The debentures are secured by a general security agreement covering all company assets, guarantees from four subsidiaries, and pledged shares in those subsidiaries. The company reimbursed Plaza Capital $25,000 for transaction expenses.

Stardust Solar stated it will use the proceeds for its solar project in Zambia and for general administrative, marketing and working capital purposes. All securities are subject to a statutory hold period expiring June 18, 2026.

The Vancouver-based company describes itself as a diversified solar royalty company developing revenue streams across residential, commercial and utility-scale markets in North America with international expansion plans.

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