Hashish producer Cover Progress raised gross proceeds of roughly $50 million (68 million Canadian {dollars}) via an alternate and subscription settlement with an institutional investor.
Cover mentioned in a Friday information launch that it intends to make use of the online proceeds for working capital and common company functions.
The Smiths Falls, Ontario-based enterprise additionally mentioned it plans to alternate roughly CA$27.5 million of current debt, which matures in September 2025, for a brand new senior unsecured convertible debenture that matures in 5 years.
Below the deal, the unidentified investor will purchase the convertible debenture in an mixture principal quantity equal to CA$96,358,375.
Cover will situation to the investor an extra 3,350,430 widespread share buy warrants.
Every warrant entitles the holder to amass a standard share at an train worth of CA$16.18 for a interval of 5 years.
The convertible debenture bears curiosity at a fee of seven.5% per yr.
The debenture will likely be convertible into widespread shares on the choice of the investor at a worth of CA$14.38 per share. That’s the Canadian greenback equal of the common Nasdaq closing worth of the shares for the 5 buying and selling days previous the settlement.
Cover shares commerce as CGC on the Nasdaq and WEED on the Toronto Inventory Trade.