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Greenstone Capital RTO Target Announces Completion of $4.7 Million Convertible Debenture Financing and Launch of $5.0 Million Subscription Receipt Financing
Calgary, Alberta--(Newsfile Corp. - February 24, 2021) - Greenstone Capital Corp. (TSXV: GSG...
About this update from Comprehensive Healthcare Systems Inc
[{"type":"text","content":"Greenstone Capital RTO Target Announces Completion of $4.7 Million Convertible Debenture Financing and Launch of $5.0 Million Subscription Receipt FinancingCalgary, Alberta--(Newsfile Corp. - February 24, 2021) - Greenstone Capital Corp. (TSXV: GSGS.P) (the \"Company\" or \"Greenstone\"), a capital pool company (\"CPC\") pursuant to Policy 2.4 of the TSX Venture Exchange (the \"Exchange\"), is pleased to announce that Comprehensive Healthcare Systems Inc. (\"CHS\") has closed a non-brokered private placement of convertible debentures (the \"Debentures\") for aggregate gross proceeds of approximately $4.7 million (the \"Debenture Financing\"). The Company is also pleased to announce that CHS and Greenstone have entered into an engagement letter with Richardson Wealth Limited (\"Richardson Wealth\") to act as lead agent in respect of a brokered private placement of up to 16,666,667 subscription receipts of CHS (the \"Subscription Receipts\") at a purchase price of $0.30 per Subscription Receipt (the \"Concurrent Financing Offering Price\") for aggregate gross proceeds of up to $5.0 million (the \"Subscription Receipt Financing\"). The Debenture Financing and the Subscription Receipt Financing have been undertaken in connection with the previously announced statutory merger between CHS and Greenstone Capital USA Inc., a wholly-owned subsidiary of the Company (the \"Proposed Transaction\"). The Proposed Transaction is intended to constitute the Company's \"Qualifying Transaction\" (as such term is defined in Policy 2.4 of the TSX Venture Exchange (the \"Exchange\")).Debenture FinancingAn aggregate principal amount of approximately $4.7 million of Debentures were issued in connection with the Debenture Financing. The Debentures mature on the date that is one year from the date of issuance (the \"Maturity Date\") and bear interest at a rate of 10% per annum. In the event that the Proposed Transaction is completed prior to the Maturity Date, the outstanding principal amount and accrued interest thereon will automatically convert into units of CHS (the \"Debenture Units\") at the option of the holder at a conversion price equal to the Concurrent Financing Offering Price less a discount of 20% per Debenture Unit. Each Debenture Unit shall be comprised of one (1) share in the common stock of CHS (a \"CHS Share\") and one-half of one CHS S...