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Zenabis Announces $25 Million in Additional Debt Financing and Extension and Partial Conversion of Secured Convertible Notes

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Zenabis Global Inc. (TSX: ZENA) (“Zenabis” or the “Company“) is pleased to announce that it has today signed definitive documentation with respect to $25,000,000 (the “New Senior Debt“) in new senior secured debt financing (the “Financing“) from R.C. Morris Capital Management Ltd. (“RCM“). The Financing has been effected by way of amending and restating the debenture representing senior secured debt in the principal amount of $25,000,000 provided by the existing senior lender (the “Original Senior Debt“, and together with the New Senior Debt, the “Senior Debt“), such that the amended and restated debenture (the “Amended and Restated Debenture”), in which RCM is now one of the lenders, now represents $50,000,000 in senior secured debt.

The New Senior Debt will bear interest at a rate of 14% per annum, calculated and payable monthly. The Senior Debt will have a maturity date of June 30, 2020. The Company will have the right to prepay any principal amount of the Senior Debt.

In connection with the New Senior Debt, the Company has paid certain customary fees, including a structuring fee to RCM in an amount equal to five percent of the New Senior Debt, and issued RCM warrants exercisable to acquire 902,514 common shares of the Company (each, a “Common Share“) at any time until August 21, 2022 at an exercise price of $1.38502 per Common Share. The exercise price was determined based on the five-day volume-weighted average price of the Common Shares on the TSX immediately preceding the date hereof.

Concurrently, the holders of the subordinated secured convertible notes (the “Convertible Notes“) of the Company have agreed to extend the maturity date of the Convertible Notes to June 30, 2020 and subordinate the Convertible Notes to the New Senior Debt. In consideration thereof, the conversion price of Convertible Notes has been reduced to $1.54635and the interest rate of the Convertible Notes has been increased to 11%. The Company will also have a right to prepay the Convertible Notes at any time on or after October 17, 2019. The holders of the Convertible Notes have also agreed to convert, effective today and at the new conversion price, 30% of the principal amount of the Convertible Notes, such that the aggregate outstanding principal amount of the Convertible Notes will be approximately $17.4 million. The Company has also issued the holders of the Convertible Notes warrants exercisable to acquire an aggregate of 1,373,712 Common Shares at any time until August 21, 2022 at an exercise price of $1.82 per Common Share.

“We are pleased to be strengthening our financial position through securing this additional senior debt, reducing the principal amount outstanding of our existing secured convertible notes, and extending the maturity date of our existing secured convertible notes,” said Andrew Grieve, Chief Executive Officer of Zenabis. “These developments ensure we have a surplus of capital to complete the expansion of our facilities to achieve an annual design capacity of 143,200 kg of dried cannabis and become cashflow positive upon completion of our current capital program. In addition, we note that Zenabis does not intend to raise incremental debt financing, raise convertible debt, or issue incremental equity capital in order to pursue the expansion of our cultivation capacity. Instead, the next priority of Zenabis is the replacement of the Senior Debt and the Convertible Notes with standard bank financing. Upon completion of a refinancing of the Senior Debt and the Convertible Notes and the transition to a permanent capital structure, Zenabis intends to publish leverage targets to provide for a predictable ongoing capital structure.

 

SOURCE Zenabis Global Inc.

Cannabis

Sunniva Announces Closing Of Third Tranche Of Short Term Bridge Financing For Proceeds Of Cad $325,000

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Sunniva Inc. (“Sunniva”, the “Company”, “we”, “our” or “us”) (CSE:SNN) (OTCQB:SNNVF), a North American provider of cannabis products and services, is pleased to announce that it has closed the third tranche of the Company’s non-brokered private placement (the “Offering“), previously announced on August 1, 2019 of CAD $325,000 for a total of 325,000 units of the Company (“Units“). In aggregate the total gross proceeds raised by the Offering was CAD $7.57 million and 7.57 million Units issued. Each Unit consists of a principal amount of unsecured promissory notes of the Company (“Promissory Notes“) and common share purchase warrants of the Company (“Warrants“).

As previously disclosed, proceeds of the Offering will be used to provide short term working capital for operations in California, capital costs at the Sunniva California Campus and general corporate purposes.

The Units issued under the Offering have the following terms:

Promissory Notes  

     Maturity: 

6 months from the closing date.

     Interest Rate:

10% (annual rate).

Warrants 

     Number of Warrants:   

0.40 Warrants per Unit (each Warrant entitles the holder to acquire one common

share of the Company at the Warrant Exercise Price).

     Warrant Exercise Price:  

CAD $2.50 per Warrant.

     Warrant Term:         

24 months from closing.

A finder’s fee of 5% payable in cash will be paid to certain investment advisors for introducing certain purchasers of Units to the Company.

The Promissory Notes and Warrants have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Promissory Notes or Warrants in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

For more information please visit: www.sunniva.com.

To be added to the Sunniva email distribution list please register at www.sunniva.com/email-alerts.mailto:

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

SOURCE Sunniva Inc.

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Prairie Records Tops the Charts: Named Top Cannabis Retailer in Canada at Grow UP

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Westleaf Inc. (the “Company” or “Westleaf“) (TSX-V:WL) (OTCQB:WSLFF) is proud to announce its Prairie Records retail stores have been named top cannabis retailer in Canada at the GrowUP Conference & Expo. Singing a different tune in cannabis retail, the award win is a testament to how Prairie Records is offering Canadian’s a truly unprecedented purchasing experience.

“It is extremely gratifying to have Prairie Records be recognized at one of the industry’s largest events and to be able to stand out amongst a field of very worthy retail competitors,” says Adam Coates, Chief Commercial Officer at Westleaf and Retail Brand Strategist for Prairie Records. “We set out to make waves in a sea of sameness by creating an immersive experience like no other in the marketplace, and we are pleased and honoured to receive this, the first Grow UP Conference retail award.”

Ten companies were nominated in the Grow UP retail category at this year’s event, the first for the industry. Among the nominees were independent stores and well-known national chains. Prairie Records was recognized based on delivering an unparalleled consumer purchasing experience and creating a welcoming brand for cannabis consumers.

Westleaf has four Prairie Records stores open, three in the Saskatoon region and one in Calgary, which is hosting its grand opening tomorrow, September 14. The concept combines the tactile and immersive feel of a vinyl record store with a cannabis purchasing experience. Information about the cannabis strains and strengths are presented on album covers and the customer is enveloped in a warm and welcoming retail experience. The staff are well versed on the product offering and provide educational opportunities for both the experienced cannabis connoisseur as well as the novice consumer.

 

SOURCE Westleaf Inc.

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Cannabis

INTERCURE: CANNDOC signs strategic distribution agreement with S.L.E. of TEVA Pharmaceuticals

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InterCure (TASE: INCR), announced that subsidiary Canndoc has entered into a strategic distribution agreement with Salomon, Levin, Elstein (S.L.E.,) which is owned by Teva Pharmaceuticals Industries (NYSE: and TASE: TEVA).

Under terms of the agreement, S.L.E. will distribute Canndoc’s GMP products to pharma clients, including hospitals, health maintenance organizations (HMOs) and all pharmacies in Israel, including pharmacy chains. In the future, as regulatory approvals allow, S.L.E. will provide logistics capability for exporting Canndoc’s products to countries that support regulations for the sale and distribution of cannabis products for medical use.

S.L.E. is one of Israel’s leading companies for providing health logistics services and distributes products from dozens of local and international companies. S.L.E. is licensed by the Israeli Ministry of Health, and also holds a GDP distribution license.

“Our agreement with S.L.E., Israel’s leading company in distributing medical products, creates a complete supporting platform for supplying Canndoc’s GMP products to any location in Israel and for countries with similar regulations,” said Canndoc’s Chairman Ehud BarakThrough its S.L.E. partnership, Canndoc has aligned itself with one of the most prominent pharmaceutical companies in the world, for the distribution of cannabis-based medical treatments to countries that recognize the value of these medicines for people in need.”

S.L.E. CEO Aviad Bossi adds, “The agreement brings together our well-established pharmaceutical distribution network with Canndoc’s high quality medical cannabis industry presence and market leadership. Beyond the operations in Israel, this agreement will provide Canndoc significant logistical capabilities that can support Canndoc’s exporting operations from Israel.”

The distribution agreement is set for a 3-year term and includes a mechanism for automatic extension periods of two years each.

Canndoc is one of the first licensed producers, with its GMP-approved medical cannabis Rx products being sold in pharmacies. The engagement in this distribution agreement will broaden Canndoc’s ability to distribute GMP products to its patients within the S.L.E. pharmacy network throughout Israel. In addition, S.L.E. will provide Canndoc significant logistical capabilities in the future supporting Canndoc’s ability to export its products to countries with consistent regulation for the sale and distribution of cannabis products for medical use.

 

SOURCE Canndoc

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