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The cost of living just keeps getting more expensive.
This week saw headlines in the news around the rise in US inflation, up 8.5% over the year to the end of March, to hit its highest rate since 1981.
The war in Ukraine drove up energy costs for Americans, and food and housing costs also skyrocketed. It is hoped that this latest surge in prices will put pressure on the US Federal Reserve to hike interest rates, while some hope that this could be the peak for inflation.
We’ve all seen the effect that surging crude prices has on our lives, and the energy market has gained some significant ground of late. Now seems like a most appropriate time for companies in this space to make some moves.
One of which is oil and gas exploration company
CGX Energy Inc. (TSX-V: OYL, Forum), who recently entered into an agreement for a $35 million (USD) loan from
Frontera Energy Corporation.
The loan will allow CGX to continue to finance part of its share of costs related to the Corentyne Block and the Berbice Deepwater Port in Guyana, and other budgeted costs as agreed to with Frontera.
The loan to CGX will be available for drawdown in tranches on a non-revolving basis until September 10, 2023, or the date on which CGX has drawn down the maximum amount of the loan.
The loan, together with all interest accrued, shall be due and payable on September 10, 2023, or such a later date as determined by Frontera.
Interest payable on the principal amount outstanding shall accrue at a rate of 9.7% per annum payable monthly in cash, with interest on overdue interest.
If the loan is extended by Frontera past September 10, 2023, in its sole discretion, the new interest rate will be 15% per annum.
The loan will be secured by all of the assets of CGX. CGX has the right to prepay all or any portion of the loan, including any unpaid interest, before September 10, 2023. The maximum number of common shares of CGX which may be acquired by Frontera upon the conversion of the principal amount of the loan is 14,462,809 million common shares of CGX.
As we discussed in our last edition of Buzz on the Bullboards, the cannabis market is seeing something of a resurgence of late, driven by investment optimism around legalizing the industry at the federal level in the United States.
Ready to capitalize on this movement,
HEXO Corp. (TSX: HEXO, Forum) a producer of high-quality cannabis products, has signed an agreement with
Tilray Inc. (TSX: TLRY, Forum), a producer of medical and recreational cannabis, as well as an equity purchase agreement with an affiliate of
KAOS Capital Inc.
The closing of all agreements is expected to occur by the end of May 2022.
The terms of the transaction have been entered into among HEXO, Tilray Brands and
HT Investments MA LLC. Tilray Brands has agreed to acquire 100% of the remaining outstanding principal balance (currently $193 million (USD)) of the amended note originally issued by HEXO to HTI.
As consideration for Tilray Brands’ purchase of the note it will pay HTI% of the principal for the amended note that will be outstanding at closing. Until closing, HTI may continue to redeem the note pursuant to its terms, however, in no event shall the principal be less than $160 million (USD) before closing. HEXO will issue to HTI a number of common shares equal to 12% of the outstanding principal at the closing, divided by $0.54. If this results in HTI owning more than 9.99% of HEXO’s common shares, HEXO will issue several rights exercisable for common shares equal to the difference between the shares that would have been issued and the number of shares issued.
The purchase agreement common shares will be issued at a 7% discount to the 20-day volume-weighted average price at the time the demand is made.
HEXO will use the proceeds to fund interest payments under the amended note, to fund one or more pre-payments of such note, and for general corporate and working capital purposes.
The affiliate will be issued 7.5 million common shares for $0.72 per share as a commitment fee.
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Finally, in the health care market, we look at public clinical stage pharmaceutical outfit
Theralase Technologies Inc. (TSX-V: TLT, Forum), who provided an update on its Phase II Non-Muscle Invasive Bladder Cancer (
NMIBC) clinical study.
Theralase previously completed a successful phase I b NMIBC study which enrolled and administered the primary treatment at the therapeutic dose to three patients. To date, study II has enrolled and provided the primary treatment to another 35 patients.
In 2020, the company optimized the treatment specifically for bladder volume calculation for the administration of the study drug and device volume. It also improved the study device treatment time.
Study II adjusted treatment for patients who received either an improved primary study treatment or optimized maintenance study treatment. It consisted of 23 patients at 90 days, 26 patients at 180 days, and 27 patients at 270, 360 and 450 days.
Of the 38 patients in the entire study II, 44.7% achieved a complete result at 90 days. For the 23 patients who received optimized primary study treatment, 52.2% achieved a complete result at 90 days.
Study II proved itself to have effective clinical results for the primary, secondary, and tertiary objectives.
Dr. Arkady Mandel, CSO and interim CEO of Theralase stated,
“I am encouraged by the clinical results to date, which demonstrate the potential to fill an unmet need for patients diagnosed with BCG-Unresponsive NMIBC … These patients are facing bladder removal and by delivering them a complete response with a durability lasting up to 15 months post primary study treatment”
To our Investor Pulse Poll this week, we want to know how you’re managing with a rise in prices. Are you bracing for inflation by saving money, changing investment habits, or not at all? Let us know by clicking the image below to cast your vote.
(Click image to vote.)
Last week, we looked at the struggles of the tech sector. While nearly equal numbered respondents are interested in the market dipping or rallying, most of you seem content to just let things play out. Who can blame you.
For previous editions of Buzz on the Bullboards:
click here.