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Fincanna Capital Corp
Symbol CALI
Shares Issued 98,689,734
Close 2020-06-25 C$ 0.075
Recent Sedar Documents

Fincanna Capital arranges $2.5M debenture financing

2020-06-25 09:27 ET - News Release

Mr. Andriyko Herchak reports

FINCANNA ANNOUNCES EXTENSION AND REPRICING OF PREVIOUS CONVERTIBLE DEBENTURE FINANCING AND AN INCREASE IN THE CONVERTIBLE DEBENTURE TO RAISE $2.5 MILLION

Fincanna Capital Corp. has amended the terms of its outstanding convertible debentures and warrants and has arranged a new convertible debenture financing.

Amendments to outstanding debentures and warrants

The company has received debentureholder and warrantholder approval to amend the convertible debentures and warrants as follows. The maturity period for the debentures and warrants will be extended for an additional 24 months to Jan. 10, 2023, and Feb. 8, 2023, for the first and second tranches, respectively. The conversion price of the debenture has been decreased from 20 cents to 15 cents, the amount of debt that the company can raise that will rank pari pasu with the convertible debentures has been reduced from $4-million to zero and the debenture limit under the trust indenture has been increased from $4.8-million to $7.3-million.

Debenture financing

The company now intends to raise $2.5-million by way of a new convertible debenture financing on the following terms.

The subscription price is $1,000 per unit. The debentures will mature on Feb. 8, 2023, and will bear interest at 12 per cent per annum, payable in cash or, at the option of the subscriber, in common shares of Fincanna, subject to certain conditions. The debenture is convertible into common shares at 15 cents per share. Subscribers for debentures will receive 5,000 common share purchase warrants for each unit of the principal amount of debenture. Each warrant will entitle the holder to acquire one common share of Fincanna for 30 cents at any time up to the maturity date.

The Fincanna management team will subscribe for $500,000 principal amount of the debentures.

Fincanna intends to use the net proceeds from the convertible debenture to finance continuing working capital and general corporate purposes, as well as selective royalty investment opportunities.

"It is great to see such strong support from several prominent debentureholders and from our management team for the restructuring of our previous convertible debenture and the additional funds to Fincanna," said Andriyko Herchak, chief executive officer of Fincanna Capital. "This is a strong vote of confidence for what we've accomplished to date and for the future growth of our business."

This financing is expected to close on or before July 3, 2020. Fincanna will pay a cash finder's fee of 8 per cent on a portion of the proceeds raised.

About Fincanna Capital Corp.

Fincanna is a royalty company that provides growth capital to rapidly emerging private companies operating in the licensed United States cannabis industry. The company earns its revenue from royalties paid by its investee companies that are calculated based on a percentage of their total revenues.

We seek Safe Harbor.

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