Turnium Technology Group Announces Unsecured Convertible Note Offering

April 17, 2023 8:00 AM EDT | Source: Turnium Technology Group Inc.

Vancouver, Canada--(Newsfile Corp. - April 17, 2023) - Turnium Technology Group Inc. (TSXV: TTGI) ("Turnium" or the "Company"), an industry leader in cloud-native software-defined wide area networking solutions (SD-WAN), announces that it intends to complete, subject to regulatory approval, a non-brokered private placement of unsecured convertible notes (the "Notes") for aggregate gross proceeds of up to CAD$1,000,000 (the "Offering").

The Notes will mature on the date (the "Maturity Date") which is three years from the Closing Date (as defined below). The Notes shall bear interest at a rate of 12.0% per annum from the date of issue, payable semi-annually in arrears in cash on June 30 and December 31 of each year. The first interest payment shall be on June 30, 2023 for the period from the issue date of the Notes to June 30, 2023. A minimum of four months' interest shall accrue, regardless of the date of repayment or conversion of the Notes.

Subject to the approval of the TSX Venture Exchange (the "TSXV"), the Notes will be convertible, at the sole discretion of the Company, into units of the Company ("Units") at a conversion price of $0.16 per Unit (the "Conversion Price"). Each Unit shall consist of one Common share in the capital of the Company (a "Common Share") and one-half of one Common share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share (each, a "Warrant Share") at $0.16 per Warrant Share for a period of 36 months following the closing date of the Offering (the "Closing Date"), subject to adjustment in certain customary events.

The Company may, at its option, accelerate the expiry date of the Warrants on thirty days' notice if the volume weighted average trading price of the Common Shares on the TSXV is greater than $0.30 for the preceding ten (10) consecutive trading days.

The Notes will be unsecured obligations of the Company and shall rank pari passu in right of payment of principal and interest with all other Notes issued under the Offering and all previously existing and future unsecured indebtedness of the Company.

At any time and from time to time after the expiry of 4 months after the Closing Date, the Company may, at its option, redeem pro rata all or part of the Notes, upon not less than 30 nor more than 60 days' prior written notice, at a redemption price (payable in cash) which is equal to 110% of the principal amount thereof plus any accrued and unpaid interest that would otherwise be payable to the holder from the time of such option redemption until the Maturity Date.

The Notes shall be offered for sale on a non-brokered private placement basis in Canada to (i) "accredited investors" within the meaning of National Instrument 45-106 - Prospectus Exemptions and other exempt purchasers in each province of Canada, as determined by the Company, and (ii) outside Canada, as determined by the Company, on a basis which does not require the qualification or registration of the Notes or issuable Units. The Company currently anticipates that certain directors and officers of the Company will participate in the Offering.

The Company intends to use the net proceeds from the Offering for general corporate and working capital purposes.

The Notes will not be assignable, transferable or negotiable. The Notes, and any securities into which they may be exchanged or converted, will be subject to resale restrictions imposed by applicable securities laws, including a statutory hold period expiring four months and one day from the Closing Date. The Offering is subject to the approval of the TSXV.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons as defined under applicable United States securities laws unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.


About Turnium Technology Group, Inc.

Turnium Technology Group Inc. delivers its SD-WAN solution as a white label, containerized, disaggregated software platform that channel partners host, manage, brand, and price and as a managed cloud-native service provided by Turnium. Both Turnium SD-WAN offers are available through a channel partner program designed for Communications Service Providers, Internet and Managed Service Providers, System Integrators, and Value-Added Resellers.

For more information, contact sales@ttgi.io, visit www.turnium.com, or follow us on Twitter @turnium.

About SD-WAN

SD-WAN is revolutionizing the networking and telecommunications industry by abstracting secure, high-speed networking and network control from underlying physical circuits. SD-WAN frees enterprises, small and medium businesses, cloud and managed services providers from the business and cost constraints imposed by traditional telecommunications companies.

Turnium Contact:

Investor Relations: Bill Mitoulas, email: investor.relations@ttgi.io, telephone: +1 416-479-9547

Media inquiries, please email media@ttgi.io
Sales inquiries, please email sales@ttgi.io

www.ttgi.io, www.turnium.com


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

This announcement contains "forward-looking" statements within the meaning of applicable securities laws. Forward-looking statements and information relate to future events and future performance and reflect the Company's expectations regarding: completion of the Offering; the terms of the Offering; the terms of the Notes; and the use of net proceeds of the Offering. Forward-looking statements may be identified by words such as "seek", "believe", "plan", "estimate", "anticipate", expect", "intend", and statements that an event or result "may", "will", "should", "could", or "might" occur or be achieved and any other similar expressions.

Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from the statements made. Factors that could cause or contribute to such differences include, but are not limited to: the timing and possible outcome of regulatory approvals in connection with the Offering; the possibility that the Offering may not close; general economic, market and business conditions in Canada; risks relating to the effective management of the Company's growth; fluctuations in foreign exchange and interest rates and stock market volatility; and political and economic conditions.

There are no assurances that the Company can fulfill forward-looking statements and information. Such forward-looking statements and information are only predictions based on current information available to the Company's management team as of the date that such predictions are made; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond its control. Although the Company believes that any forward-looking statements and information contained in this press release are based on reasonable assumptions, readers cannot be assured that actual outcomes or results will be consistent with such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information.

The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.


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