Trees Corporation CANN (NEO: tree). closed the closure of a non-brokered private placement of 200 units of the company at a price of $1,000 per unit for Gross receipts of approximately $200,000. The closing is expected to be part of a larger offering for gross proceeds of up to $1 million.
Proceeds from the private placement will be used for general working capital needs and the opening of the Company’s next Trees Cannabis location at 3812a Bloor Street West, Etobicoke, ON, which is expected to open later this year.
Funding Details
Each unit consists of:
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one 12.0% secured convertible bond of $1,000 par value, convertible into common shares of the Company at a conversion price of CA$0.015 per common share and expiring 36 months from the closing of the private placement;
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66,667 warrants to purchase common shares the company. Each warrant entitles the holder to purchase one common share at a price of CA$0.015 per share until October 20, 2025, subject to any acceleration.
If, during the term of the convertible debentures, the volume weighted average share price of the common stock on the Neo Exchange Inc. is equal to or greater than CA$0.06 for twenty consecutive trading days, the Company may, upon 30 days’ prior notice, exchange the convertible debentures in whole or in part Time to partially convert into common stock at the conversion price of $0.015.
In the event that the volume weighted average price of the Common Shares on NEO is or exceeds $0.06 for twenty consecutive trading days, the Company may, upon 30 days’ prior notice, terminate the warrants’ expiry on the 30 days from the date of notice.
Photo of Mackenzie Marco on Unsplash
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