10:16:26 EDT Tue 04 Aug 2020
Enter Symbol
or Name

Grown Rogue International Inc
Symbol GRIN
Shares Issued 106,438,897
Close 2020-07-10 C$ 0.135
Recent Sedar Documents

Grown Rogue extends $2.95M of debentures to 2021

2020-07-10 17:37 ET - News Release

Mr. Obie Strickler reports


Grown Rogue International Inc. has amended the terms of its secured convertible debentures, and has cancelled the related common share purchase warrants issued pursuant to non-brokered private placements in November of 2018 and May of 2019. The amount owing under the debentures is currently $2.95-million.

Pursuant to the amendments, the maturity date of the debentures has been extended from Aug. 10, 2020, to Nov. 1, 2021, and the conversion price has been lowered from 44 cents to 12.5 cents per common share of the company. The new conversion price represents a 25-per-cent premium to the price that was required to be lowered to pursuant to the terms of the debentures.

In addition, the amendments provide that all 6,818,182 warrants have been cancelled, and the same number of new warrants have been issued to the holders thereof. The terms of the new warrants are the same as the warrants, except that: (i) the expiry date of the new warrants has been extended to Nov. 1, 2021, (ii) the exercise price of the new warrants has been lowered from 55 cents to 16 cents per common share of the company, and (iii) the new warrants issued to the investors who participated in the private placement in May of 2019 do not include the requirement for the company to issue additional warrants to the warrantholders in the event the company issues warrants with an exercise price below 55 cents per common share during the term of such new warrants.

In consideration for the extension of the maturity date of the debentures issued in 2019, the company has issued an aggregate of 1,590,910 additional common share purchase warrants to the holders of such debentures upon the same terms and conditions as the new warrants.

The company has also granted options to purchase an aggregate of 3,575,000 common shares of the company to certain employees and consultants of the company. The stock options are exercisable at a price of 15 cents per share for a period of four years from the date of issuance. A total of two million stock options were granted to insiders of the company. The common shares underlying the stock options are subject to a four-month hold period expiring on Nov. 11, 2020.

Further, the company has issued a total of 255,636 common shares of the company to certain directors and employees of the company relating to amounts owed for services rendered. An additional 65,000 common shares of the company was issued to the president and chief executive officer of the company in connection with a debt settlement. The above-mentioned common shares were issued at a price of 15 cents per share and are subject to a four-month hold period expiring on Nov. 11, 2020.

Insiders of the company received an aggregate of 275,636 common shares and two million stock options of the company. The company has relied on the exemptions from the valuation and minority shareholder approval requirements MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation.

About Grown Rogue International Inc.

Grown Rogue International is a vertically integrated, multistate cannabis family of brands on a mission to inspire consumers to "enhance experiences" through cannabis. The company has combined an expert management team, award-winning cultivation team, state-of-the-art indoor and outdoor manufacturing facilities, and consumer-insight-based product categorization to create innovative products thoughtfully curated from seed to experience.

We seek Safe Harbor.

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