Next Green Wave Holdings Inc (CSE:NGW) (OTCMKTS:NXGWF) announced Thursday that the cannabis company had completed a C$3 million convertible note offering allowing it to continue to roll-out its suite of brands and products throughout California.
In addition to financing the rollout, proceeds will also be used to make payments related to the US$21 million SDC Ventures LLC acquisition announced in March.
"The funding will allow us to continue with the rollout of the highest quality consumer-facing products and advance the build-out of our research and innovation facility that will further open our distribution channels," said Next Green Wave CEO Leigh Hughes.
The first tranche of the offering comprised of 3,000 unsecured convertible notes valued at C$1,000 each for gross proceeds of C$3 million.
The notes will mature on May 29, 2021 and generate interest at 8.5% per year, payable semi-annually on June 30 and December 30, starting next month.
The principal amount of the notes is convertible into Next Green Wave shares at a price of C$0.388. Convertible note subscribers have been issued transferable warrants entitling them to collectively purchase around 7.7 million shares at a price of $0.485 for a 24-month period from the date of issuance.
Shares of Next Green Wave slipped 6.3% in Canada to close at C$0.38 on Thursday.
Contact Angela at email@example.com
Follow her on Twitter @AHarmantas