By Stephanie N. Rotondo
Seattle, Aug. 22 – Golden Leaf Holdings Ltd. inked a “best efforts” agreement to sell up to C$10 million of secured convertible debenture units via a private placement.
Canaccord Genuity Corp. is the agent and bookrunner.
The units will hold one C$1,000-par 10% two-year senior secured convertible debenture and 1,351 common share purchase warrants.
The debentures are convertible into common stock at C$0.28 per share, a 40% conversion premium over Tuesday’s closing share price of C$0.20.
The warrants are meantime exercisable at a strike price of C$0.37 per share for a period of two years.
Proceeds will be used for working capital, inventory and to repay existing debt.
Golden Leaf is a Toronto-based cannabis oil and solution provider.
| Issuer: | Golden Leaf Holdings Ltd.
|
| Securities: | Secured Convertible debenture units
|
| Amount: | C$10 million
|
| Placement agent/bookrunner: | Canaccord Genuity Corp.
|
| Pricing date: | Aug. 22
|
| Settlement date: | Sept. 15
|
| Stock symbol: | CSE: GLH
|
| Stock price: | C$0.20 as of Aug. 22 close
|
| Market capitalization: | C$72,573,000
|
|
|
| Senior secured convertible debenture
|
| Maturity: | 2019
|
| Coupon: | 10%
|
| Price: | Par of C$1,000
|
| Initial conversion premium: | 40%
|
| Initial conversion price: | $0.28 a share
|
|
|
| Warrants
|
| Warrants: | 1,351 common share purchase warrants per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.37 a share
|
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