Business
Chalice Brands Ltd. Announces Private Placement of up to C$10 Million
Chalice Brands Ltd. Announces Private Placement of up to C$10 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., Oct. 07, 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 entered into an agreement with Canaccord Genuity Corp. (the \"Agent\"), as sole agent and bookrunner, on a commercially reasonable efforts basis in respect of a brokered private placement of unsecured convertible debenture units (the \"Debenture Units\") and equity units (the \"Equity Units\") of the Company (the \"Offering\"). Pursuant to the Offering, the Company will issue, for gross proceeds of up to C$10 million: (a) Debenture Units, each Debenture Unit to be 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) Equity Units, at a price equal to C$0.75 per Equity Unit (the \"Equity Issue Price\"), with each Equity Unit to be comprised of (i) one common share of the Company (each, a \"Common Share\") and (ii) one-half of one (1/2) Warrant. The Debentures will mature on the date that is 36 months from the date of issuance (the \"Maturity Date\") and shall bear interest at a rate of 10% per annum from the closing date of the Offering (the “Closing Date”), calculated and payable on a semi-annual basis, at the option of the Company in cash or with that number of Common Shares determined by dividing the interest amount by 95% of the volume weighted average trading price of the Common Shares on the Canadian Securities Exchange (the “CSE”) for the preceding 20 consecutive trading days and ending five days prior to the applicable interest payment date. The principal sum of the Debentures, or any portion thereof, together with accrued and unpaid interest, 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. On th...