Regenx Raises $720K at 15% Interest in Debenture Financing

Regenx Tech Corp. (CSE: RGX, OTCQB: RGXTF) has closed a non-brokered debenture financing for gross proceeds of $720,000, the company said Tuesday. The unsecured debentures carry a 15% annual interest rate. Regenx can redeem them at any time with 10 days' written notice.

The company plans to use the proceeds for operations and general working capital. Regenx recycles end-of-life diesel catalytic converters, recovering platinum and palladium through a proprietary process it calls urban mining.

The 15% coupon is steep for a working capital raise. It reflects the cost of capital for a micro-cap cleantech company that has not yet demonstrated consistent revenue from its recycling operations. The debentures are unsecured, meaning lenders are betting entirely on the company's ability to generate cash flow or secure further financing before maturity.

Regenx's last financial filings showed it burning cash on R&D and pilot-scale processing. The company has not disclosed the maturity date of the debentures or whether any existing debt will be retired with the proceeds. The redemption clause gives management flexibility to refinance if cheaper capital becomes available.

For shareholders, the 15% interest rate is a direct drag on equity value if the debentures remain outstanding for a full year. At that rate, annual interest would run roughly $108,000 against a company that reported minimal revenue in its most recent quarter. The financing buys time but does not change the underlying challenge: scaling catalytic converter processing to a level that covers operating costs.

The next milestone to watch is Regenx's quarterly production report, due in August. If processing volumes show a meaningful increase from the prior quarter, the debenture raise will look like a bridge to growth. If volumes flatline, the 15% coupon becomes a recurring expense with no offsetting revenue.