CROP Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF), the cannabis-focused group, has closed its previously announced debenture offering and raised a total of up to C$1 million gross.
As reported earlier this week, the proceeds are expected to be used to continue to grow the firm's US operations and for general working capital.
The senior secured convertible debentures were issued with a discount of 20%, with aggregate face value of up to C$1.25 million, the Vancouver-based company said.
The debentures will mature one year from the closing of the offering and will bear interest at a rate of 10% a year, payable quarterly in cash.
Holders may convert all or any part of the principal outstanding under the debentures into company shares at C$0.30 each and unpaid interest may be converted into shares at a conversion price of C$0.30 each.
Each subscriber to the offering will receive one share purchase warrant for each C$0.30 of principal amount. Each warrant entitles the holder to acquire one company share at an exercise
price of C$0.50 per warrant share for three years from closing.
Crop has a portfolio of cannabis branding, CBD and real estate assets through its wholly and partially-owned subsidiaries.
Contact Giles at [email protected]