Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Vuk Zdinjak

Cannabis Life Sciences Announces Amendments To Convertible Debentures And Underlying Warrants

CLS Holdings USA, Inc. (OTCQB:CLSH) (CSE:CLSH), a diversified cannabis company operating as Cannabis Life Sciences, announced that following receipt of the requisite approval of debenture holders and the Canadian Securities Exchange, it has amended the terms of its outstanding $13.2 million principal amount unsecured convertible debentures issued December 12, 2018 by, among other things:

  • Permitting the mandatory conversion, in the company's discretion, of $7.9 million in principal amount of the December debentures plus $132,192 in accrued interest on the December debentures into units at the reduced conversion price of $0.07125 per unit.

  • Decreasing the conversion price of the remaining December debentures to $0.10 per unit.

  • Reducing the mandatory conversion VWAP provision in the December debentures from $0.60 to $0.20.

  • Providing for a reduced conversion price to holders of the December debentures who elect to covert more than the mandatory conversion amount of December debentures on or prior to the date of the meeting of debenture holders.

  • Changing the maturity date of the December debentures so that half of the remaining December debentures mature on December 31, 2023 and the remaining December debentures mature on December 31, 2024.

  • Providing for the payment of interest accruing between July 1, 2022 and December 31, 2024 so that one-third of the total scheduled interest is paid on December 31, 2023 and the balance of the accrued interest is paid on December 31, 2024.

  • Subject to the receipt of regulatory approvals, granting a security interest in certain of the company's assets to the holders of the December debentures and to other holders of the company's debt, now or in the future, as the company may elect. All prices described above are prior to the reverse split described below.

Reverse Split

Subject to the receipt of regulatory approvals, the company plans to effect a 1-for-4 reverse stock split effective at the opening of business on September 21, 2022. As a result of the reverse stock split, every 4 shares of issued and outstanding common stock will be exchanged for 1 share of common stock, with any fractional shares being rounded up to the next higher whole share. Immediately after the reverse stock split becomes effective, the company will have approximately 32 million shares of common stock issued and outstanding. The authorized common stock will also be reduced as a result of the reverse stock split from 750 million shares to 187.5 million shares.

Photo by Giorgio Trovato on Unsplash

Related News

US Cannabis Council & Other Marijuana Players Just Made Some Key Executive Changes You Should Know About

Cannabis Life Sciences Touts Strong Financial Results From Nevada Operations, $1.75M In Revenues In January

The Week In Cannabis: Jay-Z Joins Caliva, Congress Holds Marijuana Hearings, CannTrust Gets Smoked, And More

 

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.