Maritime Launch Announces Non-Brokered Private Placement of Convertible Debentures

Maritime Launch Services Inc. (“Maritime Launch” or the “Company”) (NEO: MAXQ, OTCQB: MAXQF) developer of Canada’s first commercial spaceport, Spaceport Nova Scotia, is pleased to announce a non-brokered private placement of unsecured convertible debentures (the “Debentures”) for minimum gross proceeds of $2,000,000 (the “Offering”). The Debentures will bear cash interest (“Cash Interest”) at a rate of 10% per annum, payable quarterly, as well as paid in-kind interest (“PIK Interest”) consisting of 5% of the outstanding Debentures in common shares of the Company (a “Common Share”) at a price of $0.12 per Common Share and, unless repaid or converted, will mature 12 months from the date of issuance (the “Maturity Date”).

The outstanding principal amount and any accrued unpaid interest thereon is convertible any time up until the Maturity Date at the election of the holder into units of the Company (each, a “Unit”) at a price per Unit of $0.12, subject to anti-dilution provisions (“Conversion Price”). Each Unit will be comprised of one Common Share and one-quarter of one share purchase warrant (each whole warrant, a “Warrant”), with each Warrant exercisable to acquire one Common Share at a price per Common Share of $0.15 for a period of 5 years from the date of closing (“Closing”).The Company may choose to prepay the Debentures prior to the Maturity Date, at which point the holders may each elect, solely at the option of each holder, to be repaid in cash with an early repayment payment of 10% of the principal amount outstanding, or to convert the principal and any accrued, unpaid interest into Units at the Conversion Price.

The Company may elect to prepay the Debentures and unpaid Cash Interest and PIK Interest at any time. The Debentures will rank equally with other unsecured debt of the Company.

In connection with the Offering, the Company may pay a cash finder's fees of up to 7.5% of the gross proceeds of the Offering and issue up to such number of finder's warrants (each, a "Finder Warrant") equal to 10.0% of the gross proceeds of the Offering divided by the Conversion Price, with each Finder Warrant being exercisable to acquire one Common Share at a price of $0.12 per Common Share for a period of 5 years from the date of Closing.