Flower One obtains approval for changes to 9.5% convertibles due 2022

By Rebecca Melvin

Concord, N.H., April 14 – Flower One Holdings Inc. announced that it has received approval to amend its 9.5% convertibles due March 28, 2022 and Nov. 15, 2022 to make amendments that would, among other things, extend the maturity of the debentures to 2024.

The approval, obtained by way of written consent, allows the company to cancel an extraordinary meeting of debenture holders to consider the amendments that had been scheduled for April 15.

As previously reported, Flower One plans to restructure its convertible debentures issued March 28, 2019 and Nov. 15, 2019 in a move that will extend the maturity of the convertibles and amend the interest rate and conversion price.

The maturity date of the convertible debentures will be extended to Jan. 31, 2024 and the coupon will be changed to 4% if paid in cash or 6% if paid in company stock, at the company’s option.

The amendments will also create a new forced conversion option available to the company to convert 60% of the principal amount of each of the debentures, plus accrued interest, for units at a conversion price of $0.35 per unit.

Each unit will be comprised of one common share of the company and 5/6 of a warrant. Each whole warrant will be exercisable for one common share at an exercise price of $0.70 per common share for a period of 36 months.

The restructuring would also amend the conversion price of the debentures to $0.385 per share and change the current market price for a mandatory conversion event to $1.05.

Flower One Holdings is a Toronto-based cannabis company.

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