Maritime Launch Services Announces Completion of Extension of Convertible Debentures Agreement

(August 12, 2024) Halifax, Nova Scotia, Canada—Maritime Launch Services Inc. (Cboe CA: MAXQ, OTCQB: MAXQF) (the “Company”) has signed binding agreements with the holders of its outstanding convertible debentures to extend the maturity date from May 7, 2024, to December 7, 2024. The agreements are subject to conditions expected to be completed on or about August 14, 2024, including the issuance of 2,250,000 common shares in settlement of an extension fee.  The agreement terms are the same as those announced in principle by press release on May 8, 2024 and reported in the Company’s Q1 2024 Financial Statements available on SEDAR+.

In accordance with Cboe Exchange rules, the extension of the convertible debentures has been approved and confirmed by the Company’s Board of Directors and by an instrument in writing signed by holders of more than 50% of the Common Shares of the Company that would have been eligible to vote thereon if a meeting of the shareholders had been called for such purpose. The Company is making this disclosure as a condition of an exemption under rules of the Exchange from having the extension approved at a meeting shareholders.

Effective as of May 7, 2024, the interest rate on the debentures increased from 9% to 10% payable in cash upon maturity plus an additional 5% in PIK interest,  payable on maturity in shares based upon a conversion rate of CDN $0.12 per share, matching the terms of the debentures issued by the Company in December 2023.

Background on the Debentures

On May 7, 2021 the Company issued unsecured convertible debentures for gross proceeds of CDN$ 7,500,000 bearing interest at a rate of 4% with a maturity date of May 7, 2022.

On March 29, 2022, the terms of the debentures were amended in contemplation of the Company’s reverse-takeover transaction of Jaguar Financial Corporation (completed April 27, 2022) and the maturity date was extended to May 7, 2023.

On May 5, 2023 the terms of the debentures were amended a second time. The interest rate on the debentures was increased from 4% to 9% and the maturity date extended to May 7, 2024.