Stardust Solar Energy Inc. (TSXV: SUN | OTCQB: SUNXF) has issued a clarification announcement correcting an error in its October 14, 2026 news release regarding the terms of its non-brokered private placement of 641 senior secured convertible debenture units to KW Capital Partners Ltd. The correction addresses the default interest rate applicable under the Replacement Debentures and confirms the full retirement of the original debt. Investors in the Vancouver-based solar royalty company may be watching the disclosure closely given the material nature of correcting previously published financing terms.

Key Points

  • Stardust Solar Energy Inc. (TSXV: SUN | OTCQB: SUNXF) issued a correction to its October 14, 2026 financing announcement.
  • The default interest rate on the Replacement Debentures is 24.0% per annum — not 25.0% as previously stated.
  • The Offering raised $641,000 in aggregate gross proceeds; 100% was used to retire outstanding principal and accrued interest under the Original Debentures.
  • Investors may be watching for the TSX Venture Exchange's Final Acceptance Bulletin in respect of the Offering.

Error Correction on Event of Default Interest Rate

The core purpose of the November 2, 2026 release is to correct a specific numerical error published in Stardust Solar's October 14, 2026 announcement. The earlier disclosure stated that the Replacement Debentures would bear interest at an increased rate of 25.0% per annum upon an Event of Default. The company now confirms the correct rate is 24.0% per annum, as set out in the actual terms of the Replacement Debentures. The standard interest rate of 12% per annum and the maturity date of February 17, 2028, remain unchanged and were accurately reported in the original announcement.

Structure of the 641 Convertible Debenture Units

Each of the 641 Convertible Debenture Units issued to KW Capital Partners Ltd. at $1,000 per unit consists of one senior secured convertible debenture and 13,333 common share purchase warrants. The debentures are convertible into common shares at $0.075 per share during the first 12 months and $0.10 per share thereafter, generating potential conversion into up to 8,546,667 common shares. The company also issued an aggregate of 8,546,453 warrants, each exercisable at $0.10 per share for 24 months following closing. The Replacement Debentures qualify as a "Replacement" under TSX Venture Exchange Policy 4.1.

Original KW Capital Debentures Fully Retired Using Offering Proceeds

The Original Debentures issued to KW Capital on February 17, 2026, carried an original aggregate principal of $1,020,000. The company applied $400,000 from a separate unit private placement — announced May 13, 2026 and completed in June and July 2026 — to partially repay the debt, leaving approximately $620,000 outstanding. Stardust Solar confirms that 100% of the $641,000 raised through the current Offering was directed toward fully repaying and retiring the remaining principal, accrued interest, and associated legal fees under the Original Debentures. The company states no debt remains outstanding under those instruments.