Hydropothecary forces conversion of C$69 million debentures due 2020

By Sarah Lizee

Olympia, Wash., Dec. 15 – Hydropothecary Corp. said it will convert all of its 7% unsecured convertible debentures due Nov. 24, 2020 into the company’s common shares.

Hydropothecary was able to force conversion of the debentures on Dec. 13 because the volume-weighted average price of the common shares was equal to or exceeded C$3.15 for 10 consecutive trading days on the TSX Venture Exchange, according to a company announcement.

The VWAP of the shares was C$3.32 for the 10 consecutive trading days before Dec. 13.

The company said it has given holders 30 days written notice of the conversion, which will be effective Jan. 15.

Under the conversion, holders will receive 454.54 common shares for each C$1,000 principal amount of debentures plus accrued interest up to but excluding the conversion date. The accrued interest is equal to C$2.92, or another 1.33 common shares per C$1,000 principal amount, for a total of 455.87 common shares for each C$1,000 principal amount.

Holders may convert any of the debentures before the forced conversion date. In that case, holders will receive accrued interest in cash.

Hydropothecary is a Toronto-based licensed producer and distributor of medical cannabis.

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