Business
Lift & Co. Corp Announces Closing of $3.5 Million Private Placement from Legacy Investor Gotham Green Partners
Lift & Co. Corp Announces Closing of $3.5 Million Private Placement from Legacy Investor Gotham Green Partners.
About this update from Lift & Co Corp
[{"type":"text","content":"\n Not for Distribution to U.S. Newswire Services or for Dissemination in the United States of America TORONTO, Sept. 11, 2019 (GLOBE NEWSWIRE) -- Lift & Co. Corp. (the \"Company\") (TSXV: LIFT) (OTCQB: LFCOF) is pleased to announce that it has completed a non-brokered private placement offering (the “Private Placement”) of 10.6% senior secured convertible debentures of the Company due September 10, 2020 in the aggregate principal amount of $3,500,000 (the “Debentures”) and 2,713,178 common share purchase warrants of the Company (each, a “Warrant” and collectively the “Warrants”) for aggregate gross proceeds of $3,500,000. The subscribers pursuant to the Private Placement were affiliates of Gotham Green Partners, LLC, an insider of the Company (such funds, the “Subscribers”). The Debentures will be comprised of: (a) $2,000,000 principal amount, which will be immediately used to repay the Company’s existing indebtedness to the Subscribers pursuant to the Company’s unsecured convertible debentures due September 13, 2020; and (b) $1,500,000 principal amount which will remain outstanding. The Debentures will bear interest at a rate of 10.6% per annum and will mature on September 10, 2020, subject to prepayment upon meeting certain conditions (the “Maturity Date”). The Debentures are secured by a first ranking security interest that is in priority to all of the other obligations of the Company. The Debentures will be convertible at any time at the holder’s option into common shares of the Company (“Common Shares”) at a conversion price of $0.215, which is equal to the closing price of the Common Shares on the last trading day prior to the closing of the Private Placement (the “Closing Date”). While the Debentures are outstanding, and subject to approval of the TSX Venture Exchange (“TSXV”), interest may be paid-in-kind (“PIK”) at the Company’s option on the outstanding principal amount of such Debentures such that any amount of PIK interest is added to the outstanding principal amount of such Debentures at a price per Common Share that is based on a price no less than the market price of the Common Shares at the time of the PIK interest being added to the Debentures. Each Warrant is exerc...