Flower One wraps restructuring of 9.5% convertibles, 9˝% debentures

By Wendy Van Sickle

Columbus, Ohio, April 19 – Flower One Holdings Inc. announced that it has completed the restructuring of its 9˝% debentures due March 28, 2022 and its 9.5% convertibles due Nov. 15, 2022, according to a news release.

Both sets of securities are now due Jan. 31, 2024.

As previously reported, the restructuring also amends the interest rate and conversion price.

The coupon of the convertible debentures has been changed to 4% if paid in cash or 6% if paid in company stock, at the company’s option.

The amendments also create a new forced conversion option available to the company to convert 60% of the principal amount of each of the debentures, plus accrued interest, for units at a conversion price of $0.35 per unit.

Each unit will be comprised of one common share of the company and 5/6 of a warrant. Each whole warrant will be exercisable for one common share at an exercise price of $0.70 per common share for a period of 36 months.

The restructuring also amends the conversion price of the debentures to $0.385 per share and changes the current market price for a mandatory conversion event to $1.05.

Flower One Holdings is a Toronto-based cannabis company.

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