After obtaining legal advice about the fundraising objective, Wang and Eric decide to issue debentures to investors to raise the $3 million. Approximately 1,000 debentures will be issued to investors. The debentures will be secured over all of the assets of SCPL and will pay 10% interest. The debentures will also carry warrants over SCPL shares that will allow debenture holders to swap their debentures for a fixed number of shares in SCPL in the future. Wang also wants to ensure that SCPL can buy back the debentures at some point.

After reading about the debentures on the internet. Wang is concerned that the Company's trading relationship with suppliers might also be debentures because they involve the provision of credit.

Advise Wang as to what rights and obligations SCPL will have in relation to the debenture fundraising. Will the debentures need to be registered on the PPSR? What potential consequences may arise if the registration is incorrect?