By Abigail W. Adams
Portland, Me., Dec. 7 – DOJA Cannabis Co. Ltd. priced C$15 million in three-year senior unsecured convertible debentures to yield 8%, up 0% in a bought deal announced prior to the market open on Thursday.
Each C$1,000 debenture will be issued alongside 403 common share purchase warrants with a strike price of C$1.86, according to a company release.
Canaccord Genuity Corp. was the lead bookrunner for the deal, which carries a greenshoe of C$2.25 million.
After four months, the company may force conversion of the notes if the company’s stock trades at a price greater than C$1.86 for any 10 consecutive trading days, according to a company release.
Proceeds will be used for capital projects and general corporate purposes.
DOJA Cannabis is a Kelowna, B.C.-based marijuana lifestyle brand focused on the intersection of the medical and recreational cannabis markets.
| Issuer: | DOJA Cannabis Co. Ltd.
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| Securities: | Convertible unsecured debentures
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| Amount: | C$15 million
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| Greenshoe: | C$2.25 million
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| Maturity: | Dec. 28, 2020
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| Coupon: | 8%
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| Price: | Par
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| Conversion premium: | 0%
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| Conversion price: | C$1.24
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| Call options: | Forced conversion if shares trade at a price greater than C$1.86 for any 10 consecutive trading days
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| Warrants: | 403 per C$1,000 unit
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| Warrant strike price: | C$1.86
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| Bookrunners: | Canaccord Genuity Corp.
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| Pricing date: | Dec. 7
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| Settlement date: | Dec. 28
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| Stock symbol: | CNSX: DOJA
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| Stock price: | C$1.24 as of Dec. 6 close
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| Market capitalization: | C$73.44 million
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