Business
Golden Leaf Announces Closing of Bridge Loan and Conversion of Debentures
Golden Leaf Announces Closing of Bridge Loan and Conversion of Debentures.
About this update from Chalice Brands Ltd.
[{"type":"text","content":"\nGolden Leaf Announces Closing of Bridge Loan and Conversion of Debentures\n\nGolden Leaf Announces Closing of Bridge Loan and Conversion of Debentures\n\n\nCompany receives business license allowing sale into adult-use cannabis market in Sparks and other Nevada markets\n\n TORONTO, ON--(Marketwired - September 05, 2017) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESGolden Leaf Holdings Ltd. (\"GLH\" or the \"Company\") (CSE: GLH) (CSE: GLH.CN) (CNSX: GLH) (OTCQB: GLDFF), a leading cannabis oil solutions company built around recognized brands, today announced that it has closed its previously announced bridge loan and has received proceeds of C$2,000,000 (the \"Bridge Loans\"). Directors of the Company contributed C$800,000 to the Bridge Loans. The Bridge Loans will be due on January 31, 2018 and bear interest at the rate of 5%. Parties participating in the Bridge Loans were issued 952 common share purchase warrants (the \"Bridge Warrants\") for each C$1,000 principal amount lent. Each Bridge Warrant will entitle the holder to acquire one Common Share at a price of C$0.21 per Common Share for a period of two years following the closing of the Bridge Loans, subject to adjustment in certain events. The exercise price on the Bridge Warrants was reduced from that previously announced in order to ensure the full participation of the lenders. The net proceeds of the Bridge Loans will be used for general corporate purposes. In addition, the Company is pleased to announce that it has secured conversion of 95% of the remaining outstanding convertible debentures of the Company issued in March 2016 and that were due on September 11, 2017. An aggregate principal amount of C$4,526,000, including C$1,266,000 held by directors of the Company, has been converted (or been irrevocably committed to be converted) into Common Shares at an amended price of C$0.21 per Common Share, resulting in a strengthened balance sheet and a significant conservation of the Company's working capital. The Company agreed to an amended exercise price in order to secure conversions of such debentures prior to their maturity. Approximately 21,552,380 Common Shares will be issued to the holders of such converted debentures. Mr. William Simpson, Chief Executive Officer of Golden Leaf, commented, \"We are pleased to sec...