Inner Spirit Holdings Ltd. - 12% Senior Secured Convertible Debentures
Inner Spirit Holdings Ltd. has established a growing network of recreational cannabis stores across Canada under its Spiritleaf brand. The Spiritleaf network includes franchised and corporate-owned stores, all operated with an entrepreneurial spirit and with the goal of creating deep and lasting ties within their local communities. Spiritleaf aims to be the most knowledgeable and trusted source of recreational cannabis by offering a premium consumer experience and quality curated cannabis products.
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In two closings (May 24, 2019 and June 7, 2019 i.e. Closing Date), the Company issued to the public 10,000 Units of 12% Senior Secured Convertible Debenture (“Convertible Debentures”) for total gross proceeds of $10,000,000. Each unit consisted of one debenture in the principal amount of $1,000 and 2,000 common share purchase warrants (the "Warrant" or “Warrants”).
The Convertible Debentures carry interest at a rate of 12% per annum from the Closing Date, payable semi-annually in arrears on the last day of June and December in each year, commencing June 30, 2020, and will mature on June 30, 2022 (the "Maturity Date").
As per the Convertible Debenture agreement, the outstanding principal and interest can be converted, at the option of the holder, into common shares at a fixed price of $0.25 per share before: (i) the maturity date on June 30, 2022; (ii) the date the Company calls for redemption of debentures; or (iii) the date of change of control.
The Convertible Debenture agreement also allows that on or after December 31, 2020, the Company may redeem or convert, at its option, the outstanding principal and interest balances into common shares at the conversion price of $0.25 per share, if the daily weighted average trading price of the shares remains at $0.35 or more for 20 consecutive days preceding the notice of redemption or conversion.
Inner Spirit Holdings Ltd. - 12% Senior Secured Convertible Debentures (ISH.DB)
23 mai/May 2019
Inner Spirit Holdings Ltd. Share Purchase Warrants (the "Warrants") and 12% Senior Secured Convertible Debentures (the "Debentures") have been approved for listing.
Each Warrant shall entitle each holder thereof, upon exercise at any time after the Issue Date and prior to the Expiry Time, to acquire one (1) Common Share at the Exercise Price of $0.25, subject to adjustment in certain events.