Canada House Wellness Secures $14.5 Million Convertible Debt Financing

Canada House Wellness (CSE: CHV) announced late Tuesday night that they had secured additional funding from an alternative asset management firm to the tune of $14.58 million. The financing is set to be released to the firm via a series of tranches.

Canada House Wellness' Logo

The financing, which is to be provided by The Lind Partners, a New-York based investment fund, is to take the form of a convertible debenture. While no interest rate was provided within the release or associated filings as of this morning, the term of the debt is to be twenty four months. The first tranche will consist of $3.1 million, and will see interest be paid up front. Total interest paid amounts to $517,500 for the first tranche of the debt financing, resulting in a principal amount of $2.5 million.

The convertible debt is to convert at a price of $0.08 per share, with additional warrants having an exercise price of $0.15. In total, 16.71 million warrants will be issued in connection with the first tranche of financing with a term of 36 months. An acceleration clause exists for these warrants should the 20 day volume weighted average price of Canada House Wellness exceed $0.60.

Lastly, the company is required to repay the debt in eighteen monthly payments, which are to begin after seven months of the financing closing. The debt is secured by a general security agreement from Canada House Wellness and its subsidiaries.

Canada House Wellness may request the additional $12.0 million in funding from The Lind Partners at any time, which will see a second tranche be issued under the same terms as the first tranche. The additional financing will also result in an increase to the first tranche, however specifics were not provided.

The debt financing for Canada House Wellness is expected to close by September 13, 2019.

Information for this briefing was found via Sedar, and Canada House Wellness. The author has no securities or 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.