Sproutly amends convertibles to pay interest with stock

By Taylor Fox

Chicago, July 31 – Sproutly Canada, Inc. said it has amended its 8% senior convertible debentures due Oct. 24, 2020 to allow for the payment of interest with equity.

Sproutly plans to settle C$295,411.34 in interest under the indenture by issuing 5,371,115 common shares at a price of C$0.055 per settlement share.

Debentures in the principal amount of C$5,239,000 are outstanding and due to mature Oct. 24.

The debentures were originally convertible by the holders into common shares of the company at a price of C$0.75 per common share. Under the first supplement indenture, the company and the debenture holders approved an amendment to the conversion price to C$0.105 per share.

The settlement is subject to approval of debenture holders holding more than 20% of the outstanding debentures.

Sproutly is a supplier to the cannabis beverage and edibles market. It is based in Vancouver, B.C.

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