By Susanna Moon
Chicago, Sept. 21 – Maricann Group Inc. now plans to price up to C$20 million of convertible debenture units by way of private placement with an over-allotment option for C$5 million.
The company said on Aug. 22 that it planned to issue C$35 million of the convertible debenture units with a greenshoe for C$3.5 million.
The issue will now consist of C$1,000 principal amount of 9% secured convertible debentures and 313 common share purchase warrants, according to an amended announcement on Thursday.
The warrants will now be exercisable at a price of C$2.30 per share for three years, which is a 58.62% premium to the company’s closing price on Wednesday.
The convertibles will be convertible into common shares at a conversion price of C$1.60 per share, a 10.34% premium to the Wednesday closing price.
Canaccord Genuity Corp. is the lead placement agent. Industrial Alliance Securities Inc., Mackie Research Capital Corp. and Sprott Capital Partners are also participating.
Originally, the units were to be sold at C$1,000 each consisting of one 9% secured convertible debenture due 2020 and 278 common share warrants.
The warrants were originally exercisable for three years at a strike price of C$2.60, a 76.8% premium over the closing share price of C$1.47 at the time.
The paper was previously convertible at a price of C$1.80 a share, a 22.4% premium.
Proceeds will be used to expand production capacity by 35,000 kg a year.
Maricann is a Toronto-based vertically integrated producer and distributor of marijuana for medical purposes.
| Issuer: | Maricann Group Inc.
|
| Securities: | Convertible debenture units
|
| Amount: | C$20 million, revised from C$35 million
|
| Greenshoe: | C$5 million, revised from C$3.5 million
|
| Lead agent: | Canaccord Genuity Corp.
|
| Placement agents: | Industrial Alliance Securities Inc., Mackie Research Capital Corp. and Sprott Capital Partners
|
| Price: | Par of C$1,000
|
| Pricing date: | Aug. 22
|
| Amended: | Sept. 21
|
| Settlement date: | Sept. 28
|
| Stock symbol: | CSE: MARI
|
| Stock price: | C$1.45 at close on Sept. 20, C$1.47 as of Aug. 21 close
|
| Market capitalization: | C$104,424,000
|
|
|
| Convertible debentures
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| Maturity: | Aug. 31, 2020
|
| Coupon: | 9%
|
| Par: | C$1,000
|
| Conversion premium: | 10.34%, revised from 22.4%
|
| Conversion price: | C$1.60 per share, revised from C$1.80 a share
|
| Put options: | Upon a change of control at 104% of par plus accrued interest
|
| Call options: | If 90% or more of the paper has been tendered upon a change of control, the company can redeem whatever is outstanding at par plus accrued interest
|
|
|
| Warrants
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| Maturity: | Three years
|
| Strike price: | C$2.30, revised from C$2.60
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