By Abigail W. Adams
Portland, Me., Sept. 27 – The Supreme Cannabis Co., Inc. priced C$90 million of three-year convertible debentures at par with a coupon of 6% and an initial conversion premium of 8.89% on Thursday, according to a company news release.
GMP Securities LP and BMO Capital Markets co-led the syndicate of underwriters for the bought deal, which will be offered by way of short form prospectus in the provinces of Canada.
The deal carries a greenshoe of C$10 million.
The company may force the conversion of the debentures at their conversion price if the volume-weighted average trading price of stock is greater than C$3.43 for any 10 consecutive trading days.
Net proceeds will be used for capacity expansion, working capital and general corporate purposes.
Supreme Cannabis is a Toronto-based B2B wholesale marijuana company.
| Issuer: | The Supreme Cannabis Co., Inc.
|
| Securities: | Convertible debentures
|
| Amount: | C$90 million
|
| Greenshoe: | C$10 million
|
| Maturity: | Oct. 19, 2021
|
| Bookrunners: | GMP Securities LP and BMO Capital Markets
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 8.89%
|
| Conversion price: | C$2.45
|
| Call options: | Forced conversion if trading price greater than $3.43 for 10 consecutive trading days
|
| Pricing date: | Sept. 27
|
| Settlement date: | Oct. 19
|
| Stock symbol: | TSX: FIRE
|
| Stock price: | C$2.25 at market close Sept. 26
|
| Market capitalization: | C$555.86 million
|
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