- Aleafia Health (AH) has closed its debenture amendment transaction
- The outstanding $37,049,000 principal amount of unsecured convertible debentures were exchanged for new, secured convertible debentures
- The new debentures were issued on a private placement basis and are subject to a statutory hold period
- Aleafia, a cannabis health and wellness company, owns three licensed cannabis production facilities in Ontario
- Aleafia Health Inc. (AH) opened trading at C$0.07 per share
Aleafia Health (AH) has closed its previously announced debenture amendment transaction.
Tricia Symmes, Aleafia Health’s CEO, commented on the news.
“We are delighted we have now completed this transaction. We want to thank all those who participated for demonstrating their confidence in the company’s future. Coupled with the closing of the $5.6 million private placement, the company is now much better positioned to execute on its ambitious growth plans in all key segments of its business: adult-use, medical and international.”
Matt Sale, Aleafia Health’s CFO added,
“The two transactions are transformative for Aleafia Health’s balance sheet. They increase our liquidity by up to $11.6 million which will be used to fund working capital, capex and other growth initiatives; improve our cash flow dynamic with no mandatory cash interest payment for between 24 and 30 months; balance our refinancing profile due to the staggering of the new debentures’ maturities over a span of 6 years; and increase our financial flexibility to pursue organic growth initiatives and strategic, accretive acquisitions. I particularly want to thank members of the Steering Committee and their advisors for their hard work and perseverance in coming to this mutually beneficial outcome.”
The outstanding $37,049,000 principal amount of unsecured convertible debentures were exchanged for new, secured convertible debentures, which were issued to existing debenture holders in three equal, separate series: (a) 8.50 per cent Series A Secured Debentures Due June 30, 2024, (b) 8.50 per cent Series B Secured Debentures Due June 30, 2026 and (c) 8.50 per cent Series C Secured Convertible Debentures Due June 30, 2028.
The interest rate will remain at 8.5 per cent, but there is no mandatory cash interest payment for between 24 and 30 months as interest will initially be paid-in-kind with additional debentures reducing near-term debt servicing requirements.
A total of approximately $2.4 million principal amount of Series C Debentures were issued as payment of the consent fee to debenture holders who approved the debenture amendments.
The new debentures were issued on a private placement basis and are subject to a statutory hold period of four months. The company has applied to list each debenture series on the Toronto Stock Exchange.
Aleafia Health owns three licensed cannabis production facilities and operates a strategically located distribution centre in the province of Ontario, including the first large-scale, legal outdoor cultivation facility in Canadian history.
Aleafia Health Inc. (AH) opened trading at C$0.07 per share.
