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Diamond Estates Wines & Spirits Announces Closing of $1.83 Million Private Placement of 10.0% Unsecured Convertible Debentures
Niagara-on-the-Lake, Ontario--(Newsfile Corp. - June 10, 2021) - Diamond Estates Wines & S...
About this update from Diamond Estates Wines & Spirits, Inc.
[{"type":"text","content":"Diamond Estates Wines & Spirits Announces Closing of $1.83 Million Private Placement of 10.0% Unsecured Convertible DebenturesNiagara-on-the-Lake, Ontario--(Newsfile Corp. - June 10, 2021) - Diamond Estates Wines & Spirits Inc. (TSXV: DWS) (\"Diamond Estates\" or \"the Company\") is pleased to announce that it has completed a non-brokered private placement (the \"Offering\") of $1.83 million aggregate principal amount of 10.0 % unsecured convertible debentures of the Company (the \"Debentures\") with certain insiders of the Company, including Lassonde Industries Inc. (\"Lassonde\") and Oakwest Corporation Limited.The Debentures bear interest from the date of issue at 10.0% per annum, calculated monthly, in arrears. The interest accrues on the principal outstanding under the Debentures until such principal is repaid or converted. The Debentures will mature on July 2, 2023 (the \"Maturity Date\"), unless the holder requests to accelerate the Maturity Date in the event the Company completes an equity financing for minimum gross proceeds of $2 million within the next 12 months. The Debentures are convertible at the holder's option from the date of issuance until the Maturity Date at a conversion price of $0.185 (the \"Conversion Price\"). If repayment of the Debentures on the Maturity Date would constitute non-compliance by the Company under its senior borrowing obligations, the holder has the option to convert at the Conversion Price, or to roll the obligations over into new one-year debentures, on similar terms to be negotiated. The Debentures are also redeemable at the Company's option, subject to an early redemption fee during the first 12 months following closing of the offering of an additional 1% interest and, if during the first six months, a minimum six months interest.All securities issued in connection with the Offering are subject to a four-month hold period expiring October 11, 2021. The Company intends to use the net proceeds of the Offering for general working capital purposes in support of an anticipated increase in operations coinciding with of the reopening of the economy over the next several months.Pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), the Offering constitutes a \"related party transaction\" as insiders of the Company subscr...