Reklaim Ltd. (TSXV: MYID) (OTCQB: MYIDF), a consumer data privacy and monetisation platform, has announced a proposed amendment to its outstanding 12% senior secured convertible debentures that would allow holders to voluntarily convert principal into common shares before the maturity date. The debentures carry an aggregate principal amount of $500,000 and were originally issued on October 29, 2025. The proposed change is subject to TSX Venture Exchange approval and the execution of amending agreements with applicable debenture holders, making its implementation not yet certain.

Key Points

  • Reklaim Ltd. (TSXV: MYID) (OTCQB: MYIDF) is a Toronto-based consumer data privacy and monetisation company
  • The company proposes to allow voluntary early conversion of $500,000 in 12% convertible debentures into common shares prior to the October 29, 2028 maturity date
  • The conversion price remains unchanged at $0.105 per share; all other debenture terms, including the 12% annual interest rate, also remain unchanged
  • Investors should watch for TSX Venture Exchange approval and confirmation of amending agreements with debenture holders

Structure of the Proposed Debenture Amendment

Under the existing terms, debenture holders may only convert outstanding principal into common shares at the maturity date of October 29, 2028, at a conversion price of $0.105 per share. The proposed amendment would permit holders to elect early conversion of all or any portion of their principal at any time before maturity, by delivering a written conversion notice to Reklaim. Accrued interest on converted principal would be calculated to the conversion date and paid on the next scheduled interest payment date, with no further interest accruing on that principal after conversion.

Ownership Cap Protects Against Concentration of Control

The announcement includes a safeguard preventing any debenture holder from converting principal if doing so would result in that holder — together with persons acting jointly or in concert — beneficially owning or controlling 20% or more of Reklaim's issued and outstanding shares. An exception applies only if the company first obtains any shareholder approval required under TSXV policies. This provision is designed to limit undue concentration of voting control arising from early conversion activity, a consideration that investors in small-cap issuers may view as a meaningful governance protection.

Unchanged Terms for Non-Converting Holders and Warrant Holders

Reklaim confirmed that debenture holders who do not elect early conversion retain their instruments under the original terms, continuing to earn 12% annual interest and benefit from the existing security agreement. The amendment relates solely to adding the voluntary early conversion right; the principal amount, maturity date, interest provisions, and the company's early repayment rights are all unchanged. The terms of warrants issued alongside the debentures as part of the original non-brokered private placement offering are also unaffected by the proposed amendment.