- Chalice Brands (CHAL) has announced a brokered private placement of up to C$10 million
- The offering is comprised of equity and convertible debentures
- The company intends to use the proceeds for strategic retail license acquisitions and for general corporate purposes
- Chalice Brands is a cannabis company with operations in Oregon and California
- Chalice Brands (CHAL) closed up by 5.33 per cent trading at $0.79 per share
Chalice Brands (CHAL) has announced a brokered private placement of up to C$10 million.
The company entered into an agreement with Canaccord Genuity to offer equity units and unsecured convertible debenture units.
Each equity unit, priced at $0.75 per unit, includes one common share and one-half of one warrant.
Each debenture unit is comprised of one $1,000 unsecured convertible debenture and 500 Chalice warrants.
The debentures mature 36 months from the date of issuance, subject to acceleration, and carry an interest rate of 10 per cent per annum. The interest is payable on a semi-annual basis in cash or shares at the option of the company.
Holders may convert their debentures into common shares prior to the maturity date at a price of $1.00 per share.
On the maturity date, Chalice will pay out outstanding debenture amounts in cash.
Each warrant entitles the holder to acquire one common share for $1.10 for 24 months from the closing of the offering.
The units will be available in Canada, the U.S. and in offshore jurisdictions.
Chalice intends to use the proceeds for strategic retail license acquisitions and for general corporate purposes.
Canaccord has the option to increase the offering by up to $1,500,000.
Chalice Brands is a cannabis company specializing in production, processing, wholesale, distribution and retail with operations in Oregon and California.
Chalice Brands (CHAL) closed up by 5.33 per cent trading at $0.79 per share.