By Abigail W. Adams
Portland, Me., Sept. 10 – Golden Leaf Holdings Ltd. launched a best-effort private placement for C$15 million in convertible subordinated debenture units containing 36-month adjusted rate convertible debentures and 1,665 common share purchase warrants on Monday, according to a company news release.
Canaccord Genuity has been engaged to sell units in a private placement on a best-effort basis.
The convertibles will carry a coupon of 12% until Dec. 31, 2019 when it will decrease to 10%.
Each warrant will entitle holders to purchase one share of common stock at C$0.40 for a two-day period after the closing of the offering.
The company may force the conversion of the convertible debentures four months after the closing of the offering, which is expected on Oct. 4, if the daily volume-weighted average trading price is greater than C$0.45 for any 10 consecutive trading days, according to the news release.
Proceeds will be used for working capital and general corporate purposes.
Golden Leaf is a Toronto-based holding company with subsidiaries that produce, cultivate and market medical and recreational marijuana.
| Issuer: | Golden Leaf Holdings Ltd.
|
| Securities: | Convertible subordinated debenture units containing 1 debenture and 1,665 warrants
|
| Amount: | C$15 million
|
| Maturity: | Feb. 4, 2020
|
| Bookrunner: | Canaccord Genuity
|
| Coupon: | 12% until Dec. 31, 2019 and 10% thereafter
|
| Price: | Par
|
| Conversion price: | C$0.30
|
| Warrant expiration: | Two-days after the closing of the offering
|
| Strike price: | C$0.40
|
| Forced conversion: | May force conversion after Feb. 4, 2019 subject to a C$0.45 hurdle
|
| Pricing date: | Sept. 10
|
| Settlement date: | Oct. 4
|
| Stock symbol: | CSE: GLH
|
| Stock price: | C$0.28 at market close Sept. 7
|
| Market capitalization: | C$162.87 million
|
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