Sparta Announces Extension of Non-brokered Private Placement of Convertible Debentures

TORONTO, ON / ACCESSWIRE / January 14, 2022 / Further to a December 3^rd, 2021 news release regarding the closing of the 1^st tranche, Sparta Capital Ltd. (TSXV:SAY) (the "Corporation" or "Sparta") is pleased to announce that they will be extending the closing of their previously announced non-brokered private placement (the "Private Placement") of unsecured convertible debentures ("Debentures") for gross proceeds of up to $500,000. The net proceeds of the Debenture issuance will be used by the Corporation as a commercial loan to SBL Testing Technologies (USA) Inc. ("SBL") to fund the marketing efforts in the North American and Caribbean markets for the much needed testing programs, including traceable workplace rapid-testing for its network of North American industrial and commercial clients. This announcement comes as international discussion continues about how rapid-testing for SARS-CoV-2, for both the unvaccinated and vaccinated, may help free society from the lingering health concerns of the COVID-19 pandemic.

Each Debenture will have an issue price of $5,000 per Debenture. The Debentures will bear interest at a rate of 8% per annum payable semi-annually in arrears on June 30th and December 31st in each year commencing December 31, 2021 with a maturity date being 2 years from the date of issuance. The December 31, 2021 interest payment will represent accrued interest for the period from the Closing Date.

Each Debenture is convertible into Common Shares and Warrants at the option of the holder at any time prior to redemption or maturity (as the case may be), entitling the holder to acquire one unit (each a "Unit") at an exercise price of $0.20 per Unit. Each Unit will be comprised of one (1) Common Share in the capital of the Corporation ("Common Share") and one half (½) of one common share purchase warrant of the Corporation ("Warrant"), each whole Warrant entitling the Holder to purchase one Common Share ("Warrant Share") in the capital of the Corporation. In the event that the holder elects to convert all or any portion of the principal amount of Convertible Debentures held by them within 12 months of the Closing Date, the exercise price of the Warrant shall be $0.10 per Warrant Share expiring twenty-four (24) months from the Closing Date (the "Warrant Expiry Date"). If the holder elects to convert all or any portion of the principal amount of Convertible Debentures held by them after 12 months from the Closing Date and until the Maturity Date, the exercise price of the Warrant shall be $0.25 per Warrant Share, expiring on the Warrant Expiry Date. Holders converting their Convertible Debentures will receive accrued and unpaid interest thereon, in cash, from the period of the last interest payment date on their Convertible Debentures up to but not excluding the date of conversion.