VANCOUVER, British Columbia, Sept. 7, 2022 (GLOBE NEWSWIRE) — Christina Lake Cannabis Corp. (the “Company” or “CLC” or “Christina Lake Cannabis”) CLC CLCFF CLB is pleased to announce that it has completed a non-brokered private placement of convertible unsecured debentures (the “debentures“) with a face value of CDN$810,000 (the “offer“).
The Notes mature thirty-six (36) months from the date of issue and bear interest at a rate of 15.0% per annum, such interest being accrued monthly and paid semi-annually. Subject to the terms of the Notes, subscribers may convert the principal amounts of the Notes and any accrued but unpaid interest into common shares of the Company at any time prior to the Maturity Date (“common shares‘), at a price of $0.15 per common share.
The Debentures (principal and interest) are unsecured debt obligations of the Company and are therefore subject to existing security interests (if any) and permitted encumbrances. Every debenture has a rank equal with all other debentures, regardless of the date of issue.
In connection with the issuance of the Notes, the Company has issued an aggregate of 405,000 Bonus Warrants (“Bonus Warrants“) to the subscribers of the offering. Each subscriber received one-half bonus warrant for every $1 subscribed under the offering. Each bonus warrant is exercisable until December 31, 2024, for one additional common share per bonus warrant at an exercise price of $0.20 per share.The Bonus Warrants are subject to an acceleration clause whereby if the volume-weighted average price of CLC common stock exceeds $0.40 per common share for a period of 20 days, the Company shall expire the Bonus Warrants may be expedited by notice to holders.
All securities issued under the offering will be subject to a statutory hold period of four months and one day from the date of issue under applicable securities laws…
