GHG Closes Final Tranche of Convertible Debenture Financing Vancouver, BC - TheNewswire - July 12, 2021- GLOBAL HEMP GROUP INC. (“GHG” or the “Company”) (CNSX:GHG.CN) (OTC:GBHPF) (FRANKFURT:GHG) announces that further to its news release of July 6, 2021, the Company has closed an additional $500,000 tranche of its previously announced non-brokered 7% Secured Convertible Debentures (the “Debenture”) with the support of private corporate lenders. The Debenture has a Maturity Date of September 8, 2023 and shall bear interest at the rate of 7.0% per annum, payable for the period commencing on the Closing Date and ending on the earlier of the Maturity Date or the date the Debenture is converted into units (“Units”).
The Company has now received subscription agreements and proceeds to the above non-brokered Secured Debenture placement for total gross proceeds of $1,500,000 and will proceed immediately to closing this third and final tranche of the Debenture.
Each $1,000 principal amount of Debenture is convertible, at the option of the holder, into Units consisting of 20,000 common shares of the Issuer (each a “Common Share”), issued at a price of $0.05 per Common Share (the “Conversion Price”), and 20,000 detachable common share purchase warrant (each a “Warrant”), each Warrant entitling the holder to acquire one additional Common Share an exercise price of $0.05 at any time after the date of issuance and prior to the close of business on the last business day prior to the Maturity Date. The warrants will be listed for trading on the Canadian Securities Exchange (the “CSE”) and will have identical terms to the currently listed warrants trading under the ticker symbol GHG.WT. In the event that the Company’s common shares trade on the CSE (or such other exchange on which the common shares may be traded at such time) at a volume weighted average price of $0.12 per common share or more for a period of ten (10) consecutive trading days, the Issuer may, in its sole discretion, accelerate the expiry date of the warrants by giving notice to the holders thereof and, in such case, the warrants will expire on the 30th day after the date on which such notice is given to the holder by the company.
In connection with the closing of this final tranche of the Debenture subscription, the Company will be paying a finder's fees of $40,000.00 in cash and issuing 800,000 non-trading finders warrants (the "Finders Warrants") to eligible finders. Each Finders Warrant entitles the holder to purchase one Common Share at a price of $0.05 for a period of 24 months from the closing of the Private Placement. In addition, in order for any warrants issued as a result of conversion of the Debentures to be tradable under the symbol GHG.WT, the maximum number of warrants allowed to trade under this symbol has been increased by 30 million.
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