The second tranche consisted of the issuance of 1,538 units at C$1,000 each for gross proceeds of C$1,538,000, in addition to C$20,041,000 in gross proceeds in the first tranche that the company closed on April 27, the group said in a statement.
Amid the closing confirmation, the medical cannabis company also revealed that two of its executives are leaving.
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Under the second tranche, each unit consists of one subordinated secured debenture convertible into 1,724 common shares at a conversion price of C$0.58 and 1,724 warrants with an exercise price of C$0.76.
Each debenture is comprised of C$1,000 principal amount of convertible debentures with an interest at a rate of 10% per annum from April 27, 2020, calculated semi-annually in arrears on June 30 and December 31 of each year.
Flower said the debentures will be convertible into common shares at the option of the debenture holder at any time and from time to time prior to the maturity date upon such holder providing five business days’ notice to the company. The conversion price with respect to the shares issued upon conversion of debentures is C$0.58 per share.
Each warrant entitles the holder to acquire one common share at an exercise price of C$0.76 per warrant share for a period of 36 months from April 27, 2020. Any warrants not exercised prior to the expiry date will be voided.
In addition to the closing, Flower said that its chief legal officer Francesco Tallarico and its chief people officer Ashley Thomson are leaving to pursue opportunities outside of the cannabis industry.
“On behalf of the Board and the Company, I want to thank Francesco and Ashley for their contributions to Flowr and wish them success in their next ventures. Francesco has been an integral part of our leadership team from when we first went public in 2018. He immersed himself in the industry and has been involved in everything from regulatory, M&A, and capital raising,” the company's CEO Vinay Tolia said in the statement.
“Ashley has been a key member of our executive leadership team guiding the company through a substantial increase in headcount, implementing best in class corporate structures to enable Flowr to scale efficiently globally and has been integral to creating our corporate culture,” he added.
The company said Andrew Teehan, its deputy general counsel, will assume the interim general counsel role to ensure a smooth transition after the departure of Tallarico in late June 2020. Thomson will be leaving in early June.
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