Stem seeks approval to amend C$3.69 million convertible debentures

By Wendy Van Sickle

Columbus, Ohio, June 7 – Stem Holdings, Inc. is seeking the approval of the holders of its C$3,687,050 principal amount of convertible debentures to reprice the debentures, which presently mature on June 27, 2022 and Sept. 14, 2022, according to a news release.

The conversion price is proposed to be repriced to C$0.10 per common share from C$1.15 ‎per common share.

Additionally, the company is proposing to extend the maturity date by three years and is seeking approval of an amendment to permit it to force the conversion of the principal amount of the ‎then outstanding convertible debentures and any accrued interest at the new conversion price ‎on not less than 30 days’ prior written notice if the closing trading price of the shares of common stock of Stem exceeds C$0.80 for a period of 10 consecutive trading days on the Canadian Securities Exchange.

The amendments require the written approval of 66 2/3% of the debenture holders.

As part of the amendment, the company expects to issue 167 common share purchase warrants for each debenture unit amount of C$1,000 held, which will be priced at C$0.20 for a period of 24 months. In addition, the debenture amendment, if approved, will provide for the payment of 5% of the principal amount upon the completion of the amendments.

Based in Boca Raton, Fla., Stem Holdings is a cannabis and hemp branded products company.

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