Maritime Launch Services Announces Extension of Convertible Debentures

Maritime Launch Services Inc. (Cboe CA: MAXQ, OTCQB: MAXQF) (the “Company”) has reached an agreement in principal with the holders of its outstanding convertible debentures dated May 7, 2021 (as amended) to extend the maturity date from May 7, 2024, to December 7, 2024.

In exchange for the extension, the Company will be repaying CDN $100,000 in principal face value of the debentures as well as issuing 2,250,000 common shares in settlement of an extension fee.

The interest rate on the debentures will increase from 9% to 10% payable in cash 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.

The debenture extensions are subject to negotiation of final binding agreements and Cboe Exchange approval.

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.

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. Spaceport Nova Scotia will allow launch vehicles to place their satellites into low-earth orbit. Spaceport Nova Scotia is Canada’s first commercial orbital launch complex.

For more information about Maritime Launch and Spaceport Nova Scotia, visit www.maritimelaunch.com

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. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: entering into binding definitive extension agreements with the holders of the debentures, consideration payable in connection with the extension of the debentures, and regulatory approval of the extension by the Cboe Exchange.