(Globe Newswire) Vancouver — Christina Lake Cannabis Corp. is pleased to announce that it has closed a non-brokered private placement of unsecured convertible debentures in the principal amount of CDN$810,000.
The debentures will mature 36 months from the date of issuance and bear interest at the rate of 15.0 per cent per annum, with such interest to be accrued on a monthly basis and paid on a semi-annual basis. Pursuant to the terms of the Debentures, the subscribers may at any time prior to the maturity date convert the principal amounts of the debentures and any accrued but unpaid interest into common shares of the company, at a price of $0.15 per common share.
The debentures (principal and interest) will be unsecured debt obligations of the company, and therefore subject to existing security interests (as applicable) and permitted encumbrances. Each debenture shall rank pari passu with all other debentures, regardless of the date of issuance.
In connection with the issuance of the debentures, the corporation issued an aggregate of 405,000 bonus warrants to the subscribers of the offering. Each subscriber received one half of one bonus warrant for each $1 subscribed under the offering.
Each bonus warrant is exercisable until December 31, 2024 to acquire one additional common share per bonus warrant at an exercise price of $0.20 per share. The bonus warrants are subject to an acceleration clause, whereby if the volume weighted average price of CLC’s common shares exceeds $0.40 per common share for a period of 20 days, the company may accelerate the expiry of the bonus warrants by providing notice to the holders.
All securities issued pursuant to the offering are subject to a statutory four-month and one day hold period from the date of issuance pursuant to applicable securities laws of Canada.
Proceeds from the offering will be used to finance and repatriate the purchase of processing equipment and working capital to continue the company’s ongoing obligations.