By Wendy Van Sickle
Columbus, Ohio, June 24 – SugarBud Craft Growers Corp. completed a placement of C$4 million of 12% convertible debentures due 2023, according to a company news release.
The convertibles were offered on a “best efforts” basis in all provinces of Canada, except Quebec, as announced on April 28.
Mackie Research Capital Corp. is bookrunner for the offering.
An interest reserve account equal to interest payments for the first 12 months was established at the closing of the offering to fund the semiannual payment of interest.
The debentures will be convertible at a conversion price of C$0.05 for the first year and then C$0.10 until the earlier of the maturity date or a change of control.
If the debentures are converted, the holder will also receive the amount of interest payable through maturity in common shares, cash, or a combination of both at the company’s option.
The debentures may also be exchanged on a one-to-one basis for 15% non-convertible notes due 2023 after one year.
The notes may be called at a redemption price of 110% of the principal amount.
They are putable upon a change of control at a price of 104% of the principal amount plus unpaid interest.
Proceeds will be used to expand the cultivation capabilities at the company’s Stavely facility.
SugarBud is a Calgary, Alta.-based cannabis company.
| Issuer: | SugarBud Craft Growers Corp.
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| Securities: | Convertible debentures
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| Amount: | C$4 million
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| Maturity: | 2023
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| Bookrunner: | Mackie Research Capital Corp.
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| Coupon: | 12%
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| Conversion price: | C$0.05 for the first year and then C$0.10
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| Call options: | Freely callable at 110% of principal
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| Put options: | Upon a change of control at 104% of principal
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| Pricing date: | April 28
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| Distribution: | Off shelf
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| Stock symbol: | TSXV: SUGR
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| Stock price: | C$0.06
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