By Rebecca Melvin
New York, Nov. 6 – Flower One Holdings Inc. has priced up to C$20 million of convertible debenture units, or 20,000 units, consisting of a 9.5% convertible debenture due 2022 and common share purchase warrants, according to a company news release.
Mackie Research Capital Corp. and Canaccord Genuity Corp. are leading the syndicate of underwriters for the offering, which carries a greenshoe of 15%. The syndicate also includes Industrial Alliance Securities Inc., Haywood Securities Inc., PI Financial Corp., Eight Capital and Echelon Wealth Partners Inc.
Each unit consists of one C$1,000 debenture and 666 common share purchase warrants.
Each warrant entitles the holder to acquire one common share at C$1.55 at any time up to 36 months following the closing date.
The company may accelerate the expiry date of the warrants if the common shares exceed C$3.10 for 20 straight trading days. There is takeover protection at 101% of par.
The proceeds will be used to advance and support the continued launch of its Brand Partners’ products into the Nevada market; for working capital and for general corporate purposes; and to accelerate the company’s market entry plans for California.
Flower One Holdings is a Toronto-based cannabis company.
| Issuer: | Flower One Holdings Inc.
|
| Securities: | Convertible debenture units
|
| Amount: | Up to C$20 million
|
| Greenshoe: | 15%
|
| Maturity: | Three years
|
| Lead agents: | Mackie Research Capital Corp. and Canaccord Genuity Corp.
|
| Agents: | Industrial Alliance Securities Inc., Haywood Securities Inc., PI Financial Corp., Eight Capital, and Echelon Wealth Partners Inc.
|
| Coupon: | 9.5%
|
| Price: | Par of C$1,000
|
| Yield: | 9.5%
|
| Conversion price: | C$1.50 a share
|
| Contingent conversion: | Yes, if share price is greater than C$3.10 for 20 consecutive trading days
|
| Change-of-control put: | At 101% of par plus accrued interest
|
| Warrants: | 666 warrants per unit
|
| Warrant expiration: | Three years
|
| Strike price: | C$1.55
|
| Pricing date: | Nov. 5
|
| Stock symbol: | CSE: FONE
|
| Stock price: | C$1.48 as of Nov. 4 close
|
| Market capitalization: | C$279.62 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
