Just a reminder Hopefully this is successful and it stabilizes the stock price
Not for Dissemination to United States Newswire Services or for Dissemination in the United States
CALGARY, AB / ACCESSWIRE / July 10, 2019 / International Cannabrands Inc. (CSE: JUJU) (the “Company”) is pleased to announce it has entered into an engagement letter with Gravitas Securities Inc. (“Gravitas”) and Canaccord Genuity Corp. (collectively, the “Agents”) to act as agents, on a commercially reasonable “best efforts” agency basis, to offer for sale unsecured convertible debentures of the Company (the “Convertible Debentures”) to raise gross proceeds of up to $5 million. The Convertible Debentures will bear interest at a rate of 10% per annum, payable semi-annually in arrears commencing December 31, 2019, and will mature five (5) years from the date of issuance (the “Maturity Date”). In addition, the Agents have the option to offer for sale up to an additional $5 million principal amount of Convertible Debentures (collectively, the “Offering”). Gravitas is acting as Lead Agent and has the right to act as the lead manager and sole bookrunner for the Offering.
Each Convertible Debenture is being offered at a price of $1,000 per debenture and is convertible at any time prior to the Maturity Date into units of the Company (“Units”) at a price of $0.06 per Unit (the “Conversion Price”). In addition, in the event of a change of control, the holders will have the right to require the Company to repurchase their Convertible Debentures within thirty (30) days of the notice of a change of control at a price equal to 105% of the principal amount of the Convertible Debentures plus any accrued but unpaid interest. Each Unit will consist of one (1) common share (a “Common Share”) and one (1) common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one additional Common Share at a price of $0.10 per share for a period of 5 years from the date of issue of the Warrants, subject to the ability of the Company to accelerate the expiry date at any time after a period of four (4) months, if, during the term of the Warrants, the daily volume weighted average trading price of the Common Shares on the Canadian Securities Exchange is greater than $0.15 per share for ten (10) consecutive trading days. Closing of the Offering is expected to occur on or about July 31, 2019. The Conversion Price is subject to adjustment in certain events.
The Agents will be paid a cash commission equal to 8% of the gross proceeds of the Offering and will also receive warrants to purchase such number of Units as is equal to 8% of the aggregate gross proceeds of the Offering divided by the Conversion Price, at a price per Unit equal to the Conversion Price, exercisable for a period of five (5) years following closing (the “Agent’s Warrants”).
The Convertible Debentures, Agent’s Warrants and any Common Shares and Warrants issued upon conversion of the Convertible Debentures or exercise of the Agent’s Warrants will bear a four (4) month hold period from the date of issue of the Convertible Debentures.
It is anticipated that the net proceeds from the Offering will be used to fund acquisitions, capital expenditures and for general corporate proposes.
The completion of the Offering is subject to, among other things, completion of satisfactory due diligence by the Agents, execution of an agency agreement between the Corporation and the Agents and regulatory approval.
Steve Gormley, CEO commented: “We are thrilled to be working again with Gravitas and Canaccord on our next raise and look forward to a successful Offering.”