FAQ: Universal Digital's $50 Million Convertible Debenture Agreement with Helena Global

What is the main purpose of Universal Digital’s agreement with Helena Global?

Universal Digital has entered a subscription agreement for up to $50 million in senior secured convertible debentures to support its Bitcoin Treasury Strategy and future digital-asset initiatives, providing flexible, scalable capital structure according to CEO Chris Yeung.

What are the key financial terms of the convertible debentures?

The one-year debentures bear 17.5% annual interest, are convertible at 100% of the prior day’s CSE closing price (with a $0.05 minimum), and include warrants equal to 25% of each tranche amount exercisable for three years at 130% of the prior day’s closing price.

How will the $50 million financing be distributed?

The financing will be issued in up to 14 tranches, with the first $3.34 million tranche expected to close on or about October 31, 2025.

What security is being provided for these debentures?

The debentures are secured by all current and acquired Bitcoin holdings of Universal Digital Inc.

Who arranged this financing agreement?

Joseph Gunnar & Co., LLC served as the sole placement agent for this private placement transaction.

What is Universal Digital Inc.’s business focus?

Universal Digital is a Canadian investment company focused on digital assets, blockchain, cryptocurrencies and cryptocurrency technologies, aiming to provide shareholders with long-term capital growth through diversified investments in high-growth industries.

Where can I find more information about Universal Digital?

For more information, visit the company’s website at https://www.universaldigital.io/ or view the full press release at https://ccw.fm/nXcZk.

What is the significance of this financing for Universal Digital’s strategy?

This financing framework provides Universal Digital with flexible, scalable capital to support its Bitcoin Treasury Strategy and participate in the transformation of global finance through digital asset integration, as stated by CEO Chris Yeung.