Mr. Bin Huang reports
SPEAKEASY ANNOUNCES COMPLETION OF $2 MILLION CONVERTIBLE LOAN FINANCING
Further to the press releases of March 23, 2020, and April 22, 2020, Speakeasy Cannabis Club Ltd., a holder of a federal licence to cultivate, process and sell cannabis under the Cannabis Act, has completed the transactions contemplated by a convertible loan agreement among the company, 10161233 Canada Ltd. (the guarantor), 1244726 B.C. Ltd. (the lender), Bhayana Ventures Ltd. and 1193213 B.C. Ltd. (the finder) dated April 21, 2020, for aggregate gross proceeds of $2-million.
The company intends to use the net proceeds of the loan for capital projects and for general corporate purposes.
The principal amount of the loan, accrued interest thereon and the finder's fee payable in connection with the loan are all convertible into common shares of the company at the option of the lender and the finder, 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 has caused the grant 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.
The company also announces that it has granted one consultant the option to purchase up to 50,000 common shares of the company at a price of 42 cents with an expiry date of five years from the date of grant.
About Speakeasy Cannabis Club Ltd.
Speakeasy holds a cultivation, processing and sales licence issued by Health Canada under the Cannabis Act. Speakeasy owns 290 acres of land in Rock Creek, B.C., and leverages three generations of farming experience in British Columbia, as well as its favourable location to grow and process high-quality cannabis products at low cost. Speakeasy cultivates small-batch, high-quality craft cannabis in its 10,000-square-foot indoor facility and has completed the development of its licensed 60-acre outdoor field. The company expects to complete planting its outdoor cultivation area during second quarter 2020 and to produce approximately 70,000 kilograms of outdoor, sun-grown cannabis in 2020.
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