Deepspatial Closes Final Tranche of Private Placement for Gross Total Proceeds of $1.038 Million and Announces Conversion of Debentures

TORONTO, ON / ACCESSWIRE / December 4, 2023 / Deepspatial (CSE:DSAI)(OTCQB:DSAIF) ("Deepspatial" or the "Company"), an outcome-based artificial intelligence company, enabling organizations to enhance their decision-making capabilities by leveraging the power of data and AI, announces it has closed the final tranche of its previously announced private placement, bringing the total to $1,038,000. As part of the final tranche the Company issued 3,060,000 units (the "Units") at a price of $0.05 per unit to investors for gross proceeds of $153,000. Each Unit consists of one common share of the Company and one common share purchase warrant (a "Warrant"), whereby each Warrant entitles the holder to purchase one additional common share for a period of two years from closing at an exercise price of $0.10 per share. If, following four months and a day after the closing date, the volume weighted average price of the common shares on the CSE is equal to or greater than $0.20 for any 10 consecutive trading days, the Company may, upon providing written notice to the holders of Warrants, accelerate the expiry date of the Warrants to the date that is 30 days following the date of such written notice.

In connection with the second and third tranche closings of the private placement, the Company has paid finders fee totaling $29,300 which was settled by the issuance of Units resulting in the issuance of an additional 586,000 Units.

Net proceeds will be used for general operations (working capital) including business development and technology upgrades. All securities issued in connection with the private placement are subject to a statutory hold period expiring four months and one day from the date of issuance of the securities.

The Company is also pleased to announce that the majority of the debentureholders that participated in the Company's convertible debenture financing which was completed in October 2022 and March 2023 for total proceeds of $675,250 have elected to convert the debenture to units at a conversion price of $0.15 per unit, with each unit comprised of one common share and one-half of one warrant, with each whole warrant exercisable into a common share at an exercise price of $0.30 per share. The holders of principal amount $482,000 of convertible debentures have completed the conversion into units.