Turnium Technology Group: Closing Third Tranche, Fueling Expansion

Turnium Technology Group Inc. (TSXV: TTGI) has successfully closed the third tranche of its unsecured convertible note offering, raising CAD$1.18 million. This latest round of funding brings the total amount raised in the offering to CAD$3.0 million, with the notes bearing an interest rate of 15% per annum and a maturity date of 18 months from the closing date. The notes are convertible into units of the Company at a conversion price of $0.18 per unit.

The closing of the third tranche is a significant milestone for Turnium, as it continues to expand its cloud-native SD-WAN solutions and strengthen its global presence. With the additional capital, Turnium aims to enhance its product offerings, improve application performance, and drive organic growth through strategic acquisitions. The company's focus on innovation and customer-centric approach has positioned it well for future success in the competitive technology landscape.



The convertible notes offer holders the option to convert their notes into units of Turnium, each consisting of one common share and one-half of one common share purchase warrant. This conversion dilutes Turnium's shareholder base, as new shares are issued. However, the conversion price of $0.18 per unit is below the current market price, indicating potential upside for shareholders. If the notes are converted, Turnium will issue approximately 6.56 million new shares, diluting existing shareholders by around 6%. The warrants, if exercised, could further dilute shareholders by another 3.28 million shares, or approximately 3%.

The closing of the third tranche of unsecured convertible notes will increase Turnium's debt by CAD$1.18 million. Assuming the notes are converted into shares at the conversion price of $0.18 per unit, this would result in approximately 6.56 million new shares issued. Given Turnium's current market capitalization of around CAD$17.15 million (based on the share price of $0.16 and 107.2 million shares outstanding), the new shares would represent approximately 6.89% of the total shares outstanding. This would increase Turnium's debt-to-equity ratio and overall financial leverage, as the new debt will be added to the balance sheet without a corresponding increase in equity. However, the exact impact on the debt-to-equity ratio and financial leverage will depend on Turnium's future earnings and cash flows, as well as any additional debt or equity issuances.

In conclusion, Turnium Technology Group's successful closing of the third tranche of unsecured convertible notes is a testament to the company's growth and potential. With the additional capital, Turnium is well-positioned to continue its expansion and product development initiatives, ultimately driving shareholder value and strengthening its market position. As the company continues to innovate and adapt to the evolving technology landscape, investors should keep a close eye on Turnium's progress and potential opportunities for growth.