Empower Clinics Inc (CSE:EPW) (OTCMKTS:EPWCF) said Tuesday that it will conduct a non-brokered, private placement of unsecured convertible debentures with an aggregate principal amount of as much as C$1.5 million.
The medical cannabis company said in a statement that the proceeds are expected to be used for general working capital.
Each debenture will be convertible into units at a conversion price of C$0.15, with each unit consisting of one common share and one non-transferable share purchase warrant. Each warrant will entitle the holder to purchase one share at a price of C$0.20 per share for a period of two years from the closing of the financing.
READ: Empower Clinics rises as it announces plans for hemp-based cannabidiol extraction facility in Oregon
The debentures will mature 12 months from the closing and bear a 6% annual interest rate payable at maturity.
The accrued interest will be convertible into shares at a conversion price equal to the greater of C$0.15 per share and the market price of the shares on the date of any applicable conversion.
None of the securities to be issued will be registered under the US Securities Act of 1933 or applicable state securities laws, according to Empower. They may not be offered or sold to investors in the US.
Shares of the Vancouver-based company slipped C$0.01 to C$0.12 in Tuesday’s Canadian trading. They were down US$0.01 to US$0.09 on the OTC Markets.
Last week, Empower announced plans to open a hemp-based cannabidiol extraction facility in the Portland, Oregon, area.
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