Business
Golden Leaf Closes C$7.9 million Private Placement of Unsecured Convertible Subordinated Debenture Units
Golden Leaf Closes C$7.9 million Private Placement of Unsecured Convertible Subordinated Debenture Units.
About this update from Chalice Brands Ltd.
[{"type":"text","content":"\nNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES\n TORONTO, Nov. 16, 2018 (GLOBE NEWSWIRE) -- Golden Leaf Holdings Ltd. (the “Company”, “Golden Leaf” or the “Issuer”) (CSE:GLH) (OTCQB: GLDFF) is pleased to announce the closing of its previously announced offering (the \"Offering\") of debenture units (the \"Units\") on a “best efforts” private placement basis through Canaccord Genuity Corp. (the “Agent”) as sole agent and bookrunner. Pursuant to the Offering, the Company issued a total of 7,948 Units at a price of C$1,000 per Unit, for gross proceeds of C$7,948,000. Each Unit consists of one unsecured subordinated convertible debenture (each a “Debenture” and collectively, the “Debentures”) and 1,665 common share purchase warrants (the \"Warrants\") of the Company. Each Debenture accrues interest at a rate of 12.0% per annum until December 31, 2019 (the first interest payment date), after which such interest rate will decrease to 10.0% per annum and be payable semi-annually until maturity. Each Debenture is convertible into common shares of the Company (“Common Shares”) at a price of C$0.30 per Common Share (the “Conversion Price”), subject to adjustment in certain events. The Debentures mature on November 16, 2021. Each Warrant entitles the holder thereof to acquire one Common Share at a price of C$0.40 per Common Share until November 16, 2020, subject to adjustment in certain events. Beginning on the date that is four months and one day following closing of the Offering, the Company may force conversion of the then outstanding principal amount of the Debentures at the Conversion Price (plus the payment of accrued and unpaid interest thereon in cash) on not less than 30 days’ notice should the daily volume weighted average trading price of the Common Shares exceed C$0.45 for any 10 consecutive trading days. The Debentures will rank pari passu in right of payment of principal and interest with all other Debentures issued under the Offering and shall be subordinated to all existing secured indebtedness of the Company, including the issued and outstanding senior secured convertible debentures of the Company. Net proceeds from the Offering will be used pr...