Nextleaf Solutions Ltd C.OILS

Nextleaf secures financing

[DonRudy]

https://finance.yahoo.com/amphtml/finance/news/nextleaf-solutions-secures-3-million-230000540.html

[Buyhigheatchips]

"The Company intends to use the net proceeds from the Offering to enhance efficiencies through automation and additional manufacturing capabilities in 2021 and for general corporate and working capital purposes."

[allibabba]

Convertible note!  Yikes.  Labs 2.0 coming up.

[AuroraAurora]

@allibabba Back from the dead to sh!tpost again! Perfect (rolls eyes). 

[Gotime2]

Single institutional investor! Someone in the know can see a future

[shneps]

There is the 20% partner buy in I was talking about. Now we need to find out who the partner is. Good news. Don't listen to Alibaba because they have ulterior motives.

[Blizzy420]

You guys realize that convertible debt has been the downfall of the cannabis industry in the first place right?    These guys just punted on the chance for any success or share price appreciation in 2021, maybe something good comes after these debentures get converted into shares, but this is a bad dilutive event for the company and some people be spinning it as a positive. Hang

[shneps]

I need to disagree with you Blizzy. Just because the cannabis industry is riddled with sleezebag investors that utilize convertible debentures to protect their investment, gain interest and then convert the debt to shares it is not how the broad investing community uses convertible debt.  A 10% discount is cheap and so is the 5% note. Typically it's 20% and 8-9%. Convertible notes can

[shneps]

The convertible debt investor could also be a future acquiror and is merely getting their foot in the door at a cheap conversion price, pick up close to 20% of the company and give the company enough funding to get through the next six months.

[Blizzy420]

That's the story that was sold to all the cannabis companies in their initial rounds of financing.    I will be happy to see OILS buck that trend.   I dont see it as the top choice, convertible debt financing with its track record in this industry should be a last resort and if Nextleaf is looking to that kind of debt for support then their options must not be great...

[shneps]

They did have options, as an accredited investor who requested participation in the next financing I was never contacted. This was obviously in the company's best interest without even having to review their options. Convertible debt is cheap for the company ti institute and if the investor is who they want as a partner then it's a no brainer. 

[Gotime2]

It's worth noting that even with a 10% discount and 5% interest this deal was done at $.288 while the stock is trading at $.235, that is a 20% premium. I am trying to see the positives, the investment was facilitated by Kronos capital so it is a relationship that could expand. It is disappointing to raise money at such a low valuation but this is where we are. I don't see how raising