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Vesta Wealth Partners Ltd. Receives Warrants and Secured Non-Convertible Notes of CE Brands Inc. in Connection with the Restructuring of Certain Debt
Calgary, Alberta--(Newsfile Corp. - January 16, 2023) - In accordance with regulatory requirement...
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[{"type":"text","content":"Vesta Wealth Partners Ltd. Receives Warrants and Secured Non-Convertible Notes of CE Brands Inc. in Connection with the Restructuring of Certain DebtCalgary, Alberta--(Newsfile Corp. - January 16, 2023) - In accordance with regulatory requirements, Vesta Wealth Partners Ltd. (\"Vesta\"), on behalf of Vesta Global Stability Fund LP (\"Vesta Fund\"), and fully managed accounts managed by Vesta (collectively, the \"Acquiror\"), announces that in consideration for the Vesta Loan Facility Restructuring (as defined below) its has received 2,000,000 common share purchase warrants (\"Warrants\") of CE Brands Inc. (the \"Company\"). Each Warrant is exercisable to acquire one common share (\"Common Share\") at an exercise price of $0.10 at any time on or before January 13, 2025.The Warrants were issued in connection with the restructuring into senior secured notes of the Company's US$2,000,000 senior secured facility (the \"Vesta Loan Facility\") granted by Vesta Fund and announced by the Company on January 16, 2023 (the \"Vesta Loan Facility Restructuring\").Pursuant to the Vesta Loan Facility Restructuring the Company and Vesta Fund agreed to restructure the Vesta Loan Facility into a senior secured note (the \"US$2MM Note\") with terms similar to the Revised Notes (as defined below), other than the US$2MM Note is payable on demand after 60 days prior written notice with no maturity date, and the interest rate of the US$2MM Note is 18% and payable semi-annually in arrears, rather than 15% and payable annually in arrears for the Revised Notes. Other material terms of the US$2MM Note are the same as the Revised Notes, including the security of the US$2MM Note ranking pari passu with the Revised Notes. In addition, the Company, the Acquiror and the holders of the Company's $4,000,000 senior secured convertible notes issued on November 13, 2021 (the \"November Convertible Notes\") and the Company's $1,000,000 senior secured convertible notes issued on May 25, 2022 (the \"May Convertible Notes\" together with the November Convertible Notes, the \"Notes\") have agreed to restructure the Notes (the \"Secured Note Restructuring\").Pursuant to the Secured Note Restructuring the Notes have been restructured in order to remove the holders' rights to convert the Notes into Common Shares, to remove the option of the holders to request that interest ...