Flower One greenshoe ups convertible units to C$20.85 million

By Wendy Van Sickle

Columbus, Ohio, Nov. 15 – Flower One Holdings Inc. said a partial exercise of C$850,000 of the over-allotment option for its convertible debenture units brought the total deal size to C$20.85 million, or 20,850 units, according to a company news release.

The units consist of a 9.5% convertible debenture due 2022 and common share purchase warrant.

The company announced on Nov. 16 that it priced up to C$20 million of the convertible debenture units with a C$3 million, or 15%, greenshoe.

Mackie Research Capital Corp. and Canaccord Genuity Corp. led the syndicate of underwriters for the offering. 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.

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