Ventura Cannabis and Wellness Corp CVHIF

RE:RE:Consideration Shares

[lscfa]

I read that the wrong way. The no. of vibe shares issued will be based on the calc. that produces the lowest no. so it looks like it will be the VWAP. Also, the exercise price of warrants issued is based on a formula.  
 

Vibe will issue to the Company on the closing date 1,200,000 common share purchase warrants (the "Bonus Warrants"). Each Bonus Warrant would entitle the holder to acquire an additional Consideration Share at an exercise price equal to the higher of: (i) the 30-Day VWAP; (ii) $0.25 per share; or (iii) the closing trading price of the Common Shares on the Exchange on the trading day prior to closing of the acquisition. The Bonus Warrants shall expire 12 months following the date of issuance. The Bonus Warrants shall be non-transferable by the holder, except that the Company may distribute the Bonus Warrants to its shareholders.

 

lscfa wrote: Yes, it looks like $0.25 will be the no. used.    

krantz wrote:
Subject to adjustment in accordance with Article 2 of the Share Purchase Agreement, the consideration payable to the Company for the Purchased Shares is CDN$1,889,040 (the "Purchase Price"), payable in Consideration Shares. The Purchase Price will be paid and satisfied in full at the Closing Time by the Purchaser causing the issuance to the Vendor of such number of Consideration Shares as is equal to the lower of: the Purchase Price divided by the higher of: (A) the volume-weighted average trading price of the Consideration Shares on the Exchange during the 30-trading day period prior to the closing date of the acquisition (the "30- Day VWAP"); or (B) the closing market price of the Consideration Shares on the Exchange on the trading day prior to the announcement of the proposed acquisition, less a discount of not more than 25%; and the Purchase Price divided by $0.25. It looks like the number of consideration shares that we will receive, if passed, will be determined by the lower of these calculations.