- Empower Clinics Inc. (EPW) announced a proposed $1.25 million non-brokered private placement and closed a $3.78 million debt settlement
- For the private placement, the units may be sold for $1,000 per debenture unit for $250,000, and common share units for $0.05 per share unit for $1 million
- Additionally, Empower Clinics settled all amounts owed under 3,700 outstanding convertible debentures
- It also amended the terms of 18.5 million warrants that were issued with the old outstanding debentures
- The closing of the debenture financing and the issuance of the new debenture are expected to happen by the end of today
- Empower Clinics Inc. (EPW) is down 10 per cent, trading at $0.04 per share as of 12:44 p.m. EST
Empower Clinics (EPW) has announced a $1.25 million non-brokered private placement and closed a $3.78 million debt settlement.
For the private placement, the units may be sold for $1,000 per debenture unit for $250,000 and common share units for $0.05 per share unit for $1 million. However, this amount may be changed at the company’s discretion.
Each debenture unit would include one senior secured convertible debenture and 20,000 warrants of Empower Clinics. Each warrant would be exercisable into one common share for $0.075 apiece until two years after the issue date.
After this period, the debentures would bear a 10 per cent interest.
Each share unit would be made up of one share and one warrant, with each warrant exercisable into one share on the already mentioned terms.
The proceeds are expected to be used for working capital purposes and general administrative expenses.
The closing of the debenture financing and the issuance of the new debenture are expected to happen by the end of today.
Additionally, Empower Clinics settled all amounts owed under 3,700 outstanding convertible debentures, plus interest, for a total of $3.78 million. This was done in exchange for a new secured convertible debenture.
The old debentures were converted into shares at a conversion price of $0.20 per share, while the new debenture can be exchanged into shares at the option before the maturity date for $0.05 per share.
The company also amended the terms of 18.5 million warrants that were issued with the old outstanding debentures. The outstanding warrants will be amended to reduce the exercise price from $0.30 to $0.075 per share, and the expiry date extended until two years from the date of issuance.
The closing of the debenture financing and the issuance of the new debenture are expected to happen by the end of today.
Empower Clinics Inc. (EPW) is down 10 per cent, trading at $0.04 per share as of 12:44 p.m. EST.