European High Growth Opportunities Securitization Fund announced Wednesday it has converted C$160,000 of Braingrid Limited (CSE:BGRD) debentures of its remaining C$370,000 of debentures into 2 million shares of the company, at a price of C$0.08 per share.
The fund is run by London-based money manager Alpha Blue Ocean Inc.
Under the terms of the C$5.1 million financing deal between Braingrid and the Fund on July 11, the company has a cumulative make-whole obligation of $572,600, which is payable by cash or stock.
The company noted that Alpha Blue Ocean Inc advised that it did not meet the conditions for an additional drawdown of capital. Braingrid is seeking additional sources of revenue and considering strategic alternatives, the company said.
Braingrid also announced that it received a commitment for a promissory note worth as much as $60,000 from Mika Holdings Limited. The note would bear 7% interest annually.
The company also announced that Director David Posner has resigned from its board.
In other company news Wednesday, Braingrid's stock was halted at 9:20 a.m. PT but will resume trading on September 12 at 8 a.m. ET.
Toronto-based Braingrid provides grow analytics by capturing real-time data using its technology platform to increase revenues, reduce costs, risks and improve yield for cannabis-licensed producers.
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