PharmaCielo to issue up to C$15 million of 11% debentures due in 36 months

By Rebecca Melvin

Concord, N.H., Dec. 22 – PharmaCielo Ltd. plans to issue up to C$15 million of debenture units in a private placement deal, according to a company announcement on Wednesday.

Each unit will consist of C$1,000 principal amount of 11% secured debentures and 250 non-transferable common share purchase warrants. They will entitle the holder for a period of 36 months from the initial closing to acquire one common share of the company at an exercise price of a 50% premium over the market price of shares.

They are redeemable at 105 plus accrued interest up to the first anniversary; at 103 plus interest up to the second anniversary, and at par plus interest thereafter.

Proceeds are to fund operations, working capital and the build-out of its international psychoactive dry flower sales program.

The C$1,000 par units are expected to be issued Dec. 30 in one closing or more, subject to approval of the TSX Venture Exchange.

The cannabis company is based in Toronto.

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