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Golden Leaf Announces Amended Terms and Up Size of Private Placement of Secured Convertible Debenture Units and Commitments from Debtholders to Exchange Their Debt
Golden Leaf Announces Amended Terms and Up Size of Private Placement of Secured Convertible Debenture Units and Commitments from Debtholders to Exchange Their Debt.
About this update from Chalice Brands Ltd.
[{"type":"text","content":"\n\n NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES\n TORONTO, Oct. 02, 2017 (GLOBE NEWSWIRE) -- Golden Leaf Holdings Ltd. (“GLH” or the “Company”) (CSE:GLH) (OTCQB:GLDFF), a leading cannabis oil solutions company built around recognized brands, today announced that it has revised the terms of its previously announced private placement of convertible debenture units (the “Offering”). Under the revised Offering, the Company is offering up to C$15 million of debenture units (the “Units”) of the Company, each Unit to be comprised of one C$1,000 principal amount 10% senior secured convertible debenture (each, a “Debenture” and collectively, the ”Debentures”) and 2,381 common share purchase warrants (each, a “Warrant” and collectively, the “Warrants”), at a price of C$1,000 per Unit, for aggregate gross proceeds of up to C$15 million. The Debentures will bear interest at the rate of 10% per annum and mature 24 months from the closing of the Offering. Each Debenture is convertible into common shares of the Company (each, a “Common Share”) at a conversion price of C$0.21 per Common Share, subject to adjustment in certain events. Each Warrant will entitle the holder to acquire one Common Share at a price of C$0.28 per Common Share for a period of two years following the closing of the Offering, subject to adjustment in certain events. The net proceeds from the Offering are anticipated to be used for working capital, inventory and to repay existing indebtedness. In addition, the Company is pleased to announce that it has secured commitments, and expects to secure additional commitments, from certain holders of the outstanding convertible debentures of the Company due in April, 2018, and has secured commitments from all of the lenders under the bridge loans obtained by the Company on September 5, 2017, to accept early repayment of such debts and to direct the funds received towards the purchase of Units. The effect of such agreements will be to effectively consolidate the majority of the Company’s existing debt with the Debentures, putting all such debt into one instrument.  Canaccord Genuity Corp. (“Canaccord Genuity”) is acting as sole agent and bookrunner w...