Chalice Brands Ltd (CHALF)

[Ronin]

Dilution, toxic financing will occur for years here until they have bought or opened enough stores to be profitable...


Private Placement Details

The Portland, Oregon-based cannabis company also confirmed Tuesday it has completed the previously announced brokered private placement of unsecured convertible debenture units and equity units led by Canaccord Genuity Corp. as sole agent and book-runner.

Under the offering, Chalice Brands issued, for gross proceeds of CA$5.7 million: (a) 4,025 debenture units, with each debenture unit consisting of one CA$1,000 principal amount unsecured convertible debenture and 500 warrants of the company; and (b) 2.29 million equity units at a price equal to CA$0.75 per equity unit, with each equity unit comprised of one common share of the company and one-half of one (1/2) warrant.

The debentures will mature on November 23, 2024, and bear interest at a rate of 10% per annum from the closing date, calculated and payable on a semi-annual basis.

The company intends to use the net proceeds of the offering for strategic retail license acquisitions and general corporate purposes.

Price Action

Chalice Brands’ shares closed Tuesday’s pre-market session 4.57% higher at 51 cents per share.

Photo: Courtesy of CRYSTALWEED cannabis on Unsplash