Auxly Cannabis (TSXV: XLY) has managed to obtain an extension to certain outstanding debts held by Imperial Brands. Announced this morning, certain amendments have been made to the debt that appear to largely be in favour of Auxly.
The extension to outstanding debts dates back to a September 2019 investment into the company by that of Imperial Brands to the tune of $123 million, which was conducted via unsecured convertible debentures at 4% interest. Originally set to expire in September 2022, the debt has now been extended for a period of two years to September 2024.
In addition to the extension of the maturity date, the company will also see interest able to be payable in common shares which appears to be at the decision of Imperial. The interest rate will also remain unchanged, but is now payable on maturity of the debenture. The company has also seen certain approval rights granted to Imperial, however specifics were not provided.
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The changes remain subject to shareholder approval.
Auxly Cannabis last traded at $0.37 on the TSX Venture.
Information for this briefing was found via Sedar and Auxly Cannabis Group Inc. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
