RE:RE:Closing conditionsMake that $0.07 conversion rate for convertible notes. o/s notes of ~ $5.8 mil / 82 mil shares = $0.07
19. Subsequent Events:
On December 6th, 2019, the Company announced that it would be returning the escrowed proceeds of its April 1, 2019 financing $2,050,000 (note 10(iv)) as the Company did not complete a qualifying CBD related investment.
lscfa wrote: I think the co. is hoping to offer debenture holders a reduced conversion rate of $0.09 to entice them to convert.
scientus 500 million Shs / 67% => 746 million total shares
Rise shareholders 19% of 746 million = 142 million shs
debentue holders = 142 mil - 60 mil common shares = 82 mil
$7.5 mil debentures/ 82 mil shs = $0.09 conversion rate
The final structure of the Transaction will be determined by the parties following receipt of tax, corporate and securities law advice. The Transaction is an arm's length transaction. Upon the closing of the Transaction (the "Closing") it is expected that current shareholders of RISE (after the conversion of the outstanding RISE convertible debentures, discussed below) will hold approximately 19% of the Resulting Issuer Shares, existing shareholders of Scientus will hold approximately 67% of the Resulting Issuer Shares and the new shareholders as a result of the private placement financing (described below) will hold approximately 14% on a non-diluted basis.
lscfa wrote:
How is co going to get debenture holders to convert? Most of the debentures are convertible at $0.15. Probably need to do $10 million PP and use $7.5 mil to redeem debentures.
"Conversion of all outstanding RISE convertible debentures"
"Successful completion by Rise of a minimum $5 million private placement financing"