CORRECTION FROM SOURCE: Cloud DX Inc. Announces $3 Million Brokered Private Placement of Convertible Debenture Units

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WATERLOO, ON / ACCESSWIRE / September 1, 2021 / Please replace the press release dated September 1st, 2021 with the following corrected version. 

Cloud DX Inc. ("Cloud DX" or the "Company") (TSXV:CDX) is pleased to announce that it has entered into an agreement with Echelon Wealth Partners Inc. ("Echelon") pursuant to which Echelon has agreed to act as lead agent and sole book runner on behalf of a syndicate of investment dealers (collectively with Echelon, the "Agents") in connection with a brokered private placement of up to 3,000 convertible debenture units (the "Convertible Debenture Units") at a price of $1,000 per Convertible Debenture Unit for aggregate gross proceeds of up to $3,000,000 (the "Offering"). The Agents have an option to sell up to 450 additional Convertible Debenture Units for maximum aggregate gross proceeds under the Offering of $3,450,000.

Pursuant to the Offering, each Convertible Debenture Unit will be comprised of $1,000 principal amount unsecured convertible debenture (each, a "Debenture") and 1,430 common share purchase warrants of the Company (each, a "Warrant"). The Debentures will mature on the date that is 36 months from the date of issuance (the "Maturity Date") and shall bear interest at a simple rate of 10% per annum. Interest will be payable quarterly on the last business day of each quarter, commencing on December 31, 2021. The principal amount of the Debentures, or any portion thereof, may be converted at the election of the holder thereof into common shares in the capital of the Company ("Common Shares") at a conversion price of $0.35 per Common Share (the "Conversion Price") at any time prior to the Maturity Date. Each Warrant will entitle the holder thereof to acquire one Common Share at a price of $0.50 per Common Share for a period of 24 months from the closing date of the Offering.

The Company has agreed to: (i) pay the Agents a cash fee equal to 8% of the gross proceeds raised from the Offering (reduced to 3% for subscribers identified on the Company's president's list); and (ii) issue to the Agents such number of non-transferable Common Share purchase warrants (the "Agents' Warrants") as is equal to 8% of the gross proceeds raised from the Offering (reduced to 3% for subscribers identified on the Company's president's list) divided by the Conversion Price. Each Agents' Warrant will entitle the holder thereof to acquire one Common Share at an exercise price of $0.35 per Common Share for a period of 24 months from the closing date of the Offering.