Nov 17, 2023   SOURCE: BusinessWire

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.

The Offering is anticipated to close on or about December 8, 2023 or before, and is subject to customary closing conditions, consent of certain existing lenders and approvals of applicable securities regulatory authorities, including the NEO Exchange.

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 of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.

About Maritime Launch Services

Maritime Launch is a Canadian-owned commercial space company based in Nova Scotia. Maritime Launch is developing Spaceport Nova Scotia, a launch site that will provide satellite delivery services to clients in support of the growing commercial space transportation industry over a wide range of inclinations. The development of this facility will serve the constellation market clients delivering global broadband, near earth imaging and other science related activities. This will be the first commercial orbital launch complex in Canada.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements.

Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the timing and completion of the Offering, which may be impacted by regulatory approvals, lender consent and market conditions; and development of Spaceport Nova Scotia which may be impacted by the ability of Maritime Launch to secure financing on suitable terms.

Forward-looking statements in this news release are based on certain assumptions and expected future events, namely: the Company’s ability to continue as a going concern; the Company’s ability to continue to develop revenue-generating applications; continued approval of the Company’s activities by the relevant governmental and/or regulatory authorities; the continued growth of the Company; the Company’s ability to finance its operations until profitability can be achieved and sustained.

These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the potential inability of the Company to continue as a going concern; risks associated with potential governmental and/or regulatory action with respect to the Company’s operations; the inability of the Company to provide the enumerated services; and availability of launch vehicles.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

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