Plus Products receives approval for changes to 8% convertibles

Chicago, Feb. 25 – Plus Products Inc. has received approval from debentureholders for amendments to the 8% unsecured convertible debentures due Feb. 28, according to a press release.

The company has received enough proxy signed instruments to make the changes.

Plus Products is extending the maturity date by three years, increasing the coupon to 12% and granting Odyssey Trust Co. a first charge security interest in all the company’s present and after acquired properties.

Additionally, the company is now granting a conversion right under which holders may require the company to convert their outstanding debentures pro rata up to a maximum amount of C$6.25 million, or 25% of the principal amount to be converted at C$0.95, exercisable up to March 31, 2021, and deleting holders’ right to convert any part of the principal amount into common shares at C$6.50.

The company will also now amend the redemption price to 103% of the principal amount, including accrued interest until Feb. 28, 2023, and thereafter at 101.5% of the principal amount plus interest.

As previously reported, the company is paying a consent fee of C$499 per C$1,000 principal amount of debentures to holders who consented before Feb. 22.

In consideration of the consent fee paid, the company will issue one common share purchase warrant for every C$1.10 consent fee consideration to be received by debentures held on the record date.

The total consideration will be 454 warrants for every C$1,000 principal amount of debentures. Each whole warrant will allow the holder to purchase one subordinate voting share at C$1.10 per share at any time on or before Feb. 28, 2024.

An extraordinary meeting was to be held on Feb. 25 but has been canceled.

Plus Products is a San Mateo, Calif.-based cannabis-infused edibles manufacturer.

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