20:51:54 EST Sun 28 Feb 2021
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Speakeasy Cannabis Club Ltd
Symbol EASY
Shares Issued 103,279,138
Close 2020-04-22 C$ 0.45
Recent Sedar Documents

Speakeasy Cannabis arranges $2M loan financing

2020-04-22 09:22 ET - News Release

Mr. Bin Huang reports

SPEAKEASY ANNOUNCES $2 MILLION CONVERTIBLE LOAN FINANCING

Further to its press release of March 23, 2020, Speakeasy Cannabis Club Ltd. has entered into a convertible loan agreement with 10161233 Canada Ltd., 1244726 B.C. Ltd., Bhayana Ventures Ltd. and 1193213 B.C. Ltd. dated April 21, 2020, pursuant to which the lender has agreed to loan the company an aggregate of $2-million.

The parties have agreed to a senior secured convertible loan in the aggregate principal amount of $2-million. The loan will accrue interest at a rate of 55 per cent per annum and will be repayable as to $1.81-million (inclusive of interest) on the first anniversary of the closing date and as to $1,999,500 (inclusive of interest) on the second anniversary date of the closing date. The guarantor has guaranteed Speakeasy's obligations under the loan agreement. In connection with the loan, the company has agreed to pay the finder a fee of $190,000. The finder's fee is payable on the first anniversary of the closing date.

The principal amount of the loan, accrued interest thereon and the finder's fee will be convertible into common shares of the company at the option of the lender and the finder, respectively, at any time prior to the maturity date at a conversion price of $1 per share, subject to adjustment on the terms and conditions set forth in the loan agreement.

As security for the loan, the company will cause the grant to the lender of a first mortgage over the guarantor's property in Rock Creek, B.C., and a first-ranking general security agreement over all of the present and after-acquired personal property of the company and the guarantor.

It is currently anticipated that the an initial advance on the principal amount of the loan of $250,000 will be advanced to the company on or about April 24, 2020, with the balance of the funds being advanced on April 30, 2020. The advance of funds under the loan is subject to certain conditions including, but not limited to, the entering into of all security documentation, the granting of the security and the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Canadian Securities Exchange.

Speakeasy also announces that on April 8, 2020, it has granted an aggregate of 545,000 incentive stock options to an employee and a director of the company. The options have an exercise price of 42 cents per share and expire on April 8, 2025.

About Speakeasy Cannabis Club Ltd.

Speakeasy Cannabis Club holds a cultivation, processing and sales licence issued by Health Canada under the Cannabis Act.

We seek Safe Harbor.

© 2021 Canjex Publishing Ltd. All rights reserved.