Maritime Launch Announces Closing of 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 that it has closed, effective December 8, 2023, its previously announced non-brokered private placement (the “Offering”) of unsecured convertible debentures (the “Debentures”) for gross proceeds of $2,282,000. The Company intends to use the net proceeds from the Offering to advance Spaceport Nova Scotia and for general working capital.

The issuance of the Debentures pursuant to the Offering was completed on a private placement and prospectus exempt basis, such that the issuances are exempt from any applicable prospectus and securities registration requirements.

“We’re pleased to close this financing and continue our work developing Canada’s first commercial spaceport,” says Stephen Matier, President and CEO. “In 2024, our team plans to meet a number of critical milestones, including preparing for, and supporting, two launches of the suborbital program, DART, from Spaceport Nova Scotia.”

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 Common Shares of the Company at a price per Common Share of $0.12, subject to anti-dilution provisions (“Conversion Price”). Each Debenture will be accompanied by one common share purchase warrant (a “Warrant”) for each whole $0.48 principal amount of Debentures issued. Each Warrant will be exercisable at a price of C$0.15 any time prior to the date that is five (5) years from the completion of the Offering.

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 Common Shares at the Conversion Price. The Debentures will rank equally with other unsecured debt of the Company.