Business
Chalice Brands Ltd. Announces Closing of Private Placement for Gross Proceeds of C$5.7 Million
Chalice Brands Ltd. Announces Closing of Private Placement for Gross Proceeds of C$5.7 Million.
About this update from Chalice Brands Ltd.
[{"type":"text","content":"\n NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES PORTLAND, Ore., Nov. 23, 2021 (GLOBE NEWSWIRE) -- Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF) (“Chalice” or the “Company”), a premier consumer-driven cannabis company specializing in retail, production, processing, wholesale, and distribution, today announced that it has closed its previously announced brokered private placement of unsecured convertible debenture units and equity units (the \"Offering\") led by Canaccord Genuity Corp. (\"Canaccord Genuity\" or the \"Agent\") as sole agent and bookrunner. Pursuant to the Offering, the Company issued, for gross proceeds of C$5.7 million: (a) 4,025 debenture units (the \"Debenture Units\") of the Company, each Debenture Unit comprised of (i) one C$1,000 principal amount unsecured convertible debenture (each, a \"Debenture\" and collectively, the \"Debentures\") and (ii) 500 warrants of the Company (each warrant, a “Warrant”); and (b) 2,285,933 equity units (the \"Equity Units\") of the Company, at a price equal to C$0.75 per Equity Unit (the \"Equity Issue Price\"), with each Equity Unit comprised of (i) one common share of the Company (each, a \"Common Share\") and (ii) one-half of one (1/2) Warrant. An aggregate of 200,000 of such Equity Units were issued in a concurrent non-brokered placement. The Debentures will mature on November 23, 2024 (the \"Maturity Date\") and bear interest at a rate of 10% per annum from the Closing Date, calculated and payable on a semi-annual basis. The principal sum of the Debentures, or any portion thereof, may be converted at the election of the holder thereof into Common Shares at a conversion price of C$1.00 per share (the \"Conversion Price\") at any time prior to the Maturity Date. The Company may, at its option, elect to satisfy its obligation to pay the principal amount of the Debentures at maturity by delivery of that number of Common Shares obtained by dividing the principal amount of the Debentures to be so satisfied by 95% of the volume weighted average trading price (the \"VWAP\") for the 30 consecutive trading days ending five trading days preceding the Maturity Date, subject to the minimum price permi...