By Devika Patel
Knoxville, Tenn., July 2 – Flower One Holdings Inc. settled a $30 million 10% debt financing with RB Loan Portfolio II, LLC, according to a press release.
The loan initially has a two-year term and bears interest at Libor plus 800 basis points. The loan’s tenor may be extended by six months, and the debt may be prepaid.
RB Loan also will receive 25% warrant coverage. The warrants may be exercised for 30 months at an exercise price equal to the greater of the 20-day volume weighted average price of the company’s common shares from the exercise date multiplied by 1.2 for half of the warrants and 1.4 for the other half and the closing market price of the shares on the trading day immediately preceding the exercise date.
The company has drawn an initial $20 million advance and issued 1,139,757 warrants with a strike price of C$3.46 and 1,139,757 warrants with a strike price of C$4.03.
Proceeds will be used to further invest in the company’s 400,000 square foot greenhouse and for general working capital and operational purposes.
Flower One is a Toronto-based cannabis company focused on becoming the leading cannabis cultivator and producer in Nevada.
| Issuer: | Flower One Holdings Inc.
|
| Issue: | Debt financing
|
| Amount: | $30 million
|
| Maturity: | Two years
|
| Coupon: | Libor plus 800 bps
|
| Call: | Yes
|
| Warrants: | 25% coverage
|
| Warrant expiration: | 30 months
|
| Warrant strike price: | The greater of the 20-day volume weighted average price of the company’s common shares from the exercise date multiplied by 1.2 for half of the warrants and 1.4 for the other half and the closing market price of the shares on the trading day immediately preceding the exercise date
|
| Investor: | RB Loan Portfolio II, LLC
|
| Announcement date: | July 2
|
| Distribution: | Private placement
|
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