RE:RE:RE:RE:RE:RE:Financing soonPlease do not take my interpretation as being completely accurate. If others can expand, please do.
Nextleaf is currently putting out a notification stating they are looking at potentially filing a short form prospectus. They need to issue this notification at least 10 days before potentially filing the prospectus. What this short form prospectus filing would ultimately allow Nextleaf to do is make a financing move very quickly.
This can be accomplished via multiple means:
- by issuing shares
- by issuing convertible debentures (debt can be converted to shares)
- by issuing non convertible debentures (debt cannot be converted to shares)
Why do this?
1. Nextleaf has mentioned their possible intention for possible acquisitions of shares or assets. See below:
"In addition, from time to time, the Company may enter into transactions to acquire assets or the shares of other corporations. These transactions may be financed wholly or partially with debt, which may temporarily increase the Company’s debt levels above industry standards." (MD&A)
2. Possibly they are looking to acquire a US (listed) company for gaining access to US listed trading.
3. Possibly a partnership or a transaction for another company to invest in OILS.
There are many various possiblities and we won't know what their intentions are until they file the actual short form prospectus. When/if this is filed all the relevent information needs to be included.
It was filed February 10th therefore we won't see anything until at least the 20th. This is merely a notice and does not mean they have to do anything but gives them the option.
We may see something at the same time as the financials are being released in a NR.
Lots of possiblities.
Cheers