Forward Water Technologies Corp. (FWTC) has secured consent from the TSX Venture Exchange to increase its proposed offering of convertible debentures by $275,000, bringing the total to $1,025,000. The company also extended the closing date to November 4, 2025. This move, in response to investor interest, could significantly bolster FWTC’s financial position and accelerate its technological advancements in the water sector.
The non-brokered private placement involves unsecured convertible debentures, each priced at $1,000 and accompanied by 5,000 common share purchase warrants. These warrants allow holders to acquire common shares at a price of $0.07 within the first year and $0.10 thereafter. The debentures bear an annual interest rate of 14%, payable annually, and mature after 36 months. Notably, FWTC has included a prepayment right, exercisable 12 months post-issuance, adding flexibility for the company.
The proceeds from this offering will be crucial for FWTC’s ongoing operations and general working capital. This financial injection could enable the company to scale up its patented Forward Osmosis technology, which targets industrial wastewater, oil and gas, mining, agriculture, and municipal water supply sectors. The technology’s ability to reduce challenging waste streams while returning fresh water for reuse or surface release aligns with global sustainability goals and could drive significant sector development.
Insiders are expected to participate in at least 25% of the offering, constituting a related party transaction. FWTC intends to rely on exemptions from formal valuation and minority approval requirements, based on the fair market value of insider participation not exceeding 25% of the company’s market capitalization. This insider involvement could signal confidence in FWTC’s strategic direction and technological potential.
The closing of the private placement is subject to obtaining necessary corporate and regulatory approvals, including approval from the TSX Venture Exchange. All securities issued will be subject to a statutory hold period of four months plus a day from the date of issuance. FWTC may also pay finders’ fees of up to 6% of the amount raised by investors identified by finders, further incentivizing investor participation.
This financial maneuver could position FWTC as a key player in the water, sanitation, and drainage sector. The infusion of capital could accelerate the deployment of its technology, potentially setting new standards for water treatment and reuse. As FWTC continues to innovate, its impact on global water sustainability efforts could become increasingly profound, driving the sector towards more efficient and environmentally friendly solutions. The company’s focus on large-scale implementation across multiple sectors underscores its ambition to lead in water technology innovation, shaping the future of the industry.