Cansortium converts $5 million convertibles into shares, cancels issue

By Rebecca Melvin

Concord, N.H., July 2 – Cansortium Inc. exercised its right to convert $5 million of convertible promissory notes due 2022 into 8,426,574 shares of common stock, according to a company release.

Under the terms of the notes, the company had the right to force conversion of all amounts outstanding after the company’s share price closed at $0.96 or greater for 30 consecutive trading days, with an average trading volume over that period of at least 100,000 shares.

Per the terms of the notes, the remaining principal amount of each note was converted into common shares at $0.60 and the accrued interest under each note was converted into common shares at $1.01, representing the closing price of the common shares on the trading day prior to the conversion.

As a result of this and a previous cash redemption of $5 million of the convertibles on May 5, all obligations under the notes have been satisfied and the issue is being canceled.

The Miami-based cannabis company originally issued $10 million of the convertibles in February 2019.

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