SugarBud amends terms of marketed offering of up to C$3 million convertible debenture units

By Abigail W. Adams

Portland, Me., March 30 – SugarBud Craft Growers Corp. amended the terms of its previously announced marketed public offering of convertible debenture units to increase the size of the units to C$3 million and lower the conversion price of the debentures and the strike price of the warrants included in the unit, according to a company news release.

The offering, which will be marketed via short form prospectus in all provinces in Canada except Quebec, carries a greenshoe of 15%.

The convertible debenture units will consist of a 12% convertible debenture due 2027 and 775 warrants with a strike price of C$1.29, which was lowered from the previously announced strike price of C$1.39.

The interest on the convertible debentures will be payable in cash or shares at the company’s option.

The conversion price will be C$1.29 with conversion to be settled in cash, shares or a combination of both at the company’s option.

Conversion now carries a make-whole provision with holders who elect to convert the notes also receiving the amount that would have been paid in interest had the notes been held until their maturity, according to the news release.

Holders also have the option to exchange the convertible debentures for 15% secured debentures due 2027 on a one-for-one basis.

The convertible debentures and secured notes are putable upon a fundamental change at a price of 104.

Net proceeds will be used for additional processing and production equipment, facility upgrades and general corporate purposes.

SugarBud is a Calgary, Alta.-based cannabis company.

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