Dr. Arup Sen reports
SPROUTLY AMENDS MATURITY DATE OF CONVERTIBLE DEBENTURES
Sproutly Canada Inc. has entered into a fourth supplemental indenture dated April 22, 2021, between the company and TSX Trust Company, as trustee, which amends the terms of its convertible debenture indenture dated Oct. 24, 2018, as amended by the first supplemental indenture dated April 24, 2020, and as further amended by the second supplemental indenture dated July 23, 2020, and as further amended by the third supplemental indenture dated Sept. 23, 2020, providing for the issuance of 8.0 per cent senior unsecured convertible debentures in the aggregate principal amount of $10.75-million.
Pursuant to the fourth supplemental indenture, the indenture was modified to extend the expiry date by one year, subject to the prior written approval of debenture holders holding more than 20 per cent of the outstanding debentures.
As of the date hereof, debentures in the principal amount of $2-million are currently outstanding and due to mature on April 24, 2021. The debentures were originally convertible by the holders thereof into common shares of the company at a price of 75 cents per common share. Pursuant to the first supplement indenture, the company and the debenture holders approved an amendment to the conversion price to 10.5 cents per share. Pursuant to the second supplemental indenture, the indenture was amended to provide for certain payments of principal and interest under the indenture to be settled by the company in cash or common shares of the company. Pursuant to the third supplemental indenture, the indenture was amended to move the conversion price to six cents per share and extend the maturity date by six months to April 24, 2021.
In connection with the execution of the fourth supplemental indenture, the company has extended the maturity date from April 24, 2021, to April 24, 2022.
For additional details regarding the debentures, please refer to the company's news releases dated Oct. 24, 2018, Dec. 21, 2018, April 24, 2020, July 30, 2020, and Sept. 23, 2020, along with the company's final short form prospectus dated Dec. 19, 2018, each of which is available on the company's SEDAR profile.
About Sproutly Canada Inc.
Sproutly's core objective is to become the leading supplier of unique ingredients and customized formulations to the cannabis beverage and edibles market. Its natural water-soluble Infuz2O and BioNatural Oils will deliver revolutionary brands to international markets that are striving to produce diverse portfolio of differentiated consumer products. Sproutly's business focus is to execute on partnerships with local and globally established consumer brands to leverage their existing customer bases, further expand brand loyalty, assist with marketing, and support distribution networks to deliver this scientific breakthrough with speed and efficiency worldwide.
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