Canadian Quantum Energy Corporation has closed a $1 million private placement of a secured convertible debenture (Debenture), subject to TSX Venture Exchange final approval. The Debenture will bear interest at the rate of ten percent (10%) per annum, payable monthly and will have a term of 2 years with a maturity date of May 30, 2014.

The Debenture will be convertible at the holder's option into common shares of the Corporation at any time prior to the maturity date at a conversion price of $0.20 per common share.

The Corporation can force conversion of the Debenture into common shares if the Corporation's common shares trade, on a 20 day volume weighted average basis, at or above $0.50. The security interest granted by CQM under the Debenture is an undivided 25% interest in the Alexander Project.

Tags: Canadian Quantum