Forbidden Spirits Distilling Corp. announced a private placement to issue 500 convertible notes at an issue price of CAD 1,000 per note for the gross proceeds of CAD 500,000 on July 5, 2024. The Convertible Notes shall be issued in aggregate principal amounts of $1,000 and be convertible at the option of the holder into common shares at a price of CAD 0.01 per Common Share, subject to the approval of the TSX Venture Exchange.

The Convertible Notes will not be convertible into Common Shares until the Company has received a full revocation of the FFCTO and has also completed a consolidation of its Common Shares. In accordance with applicable securities legislation, the Convertible Notes to be issued pursuant to the Private Placement (and the Common Shares issuable on conversion of the Convertible Notes) will be subject to a hold period of four months and a day from the closing date of the Private Placement. All of the Company's securities, including the securities issued in connection with the Private Placement, will remain subject to the FFCTO until such order is fully revoked.

The granting of the Partial Revocation Order by the BCSC does not guarantee the issuance of a full revocation order in the future.