Things are finally starting to look up for CB2 Insights (CSE: CBII). The company announced this morning that following a strong rise in the value of its stock, the company has managed to convert an outstanding US$3.0 million note on its books to common shares of the company, while also removing all long term debt on the books.
Under the terms of the amended note that was conducted in June 2020, the company had managed to extend the debt held by Merida Capital Partners to December 24, 2022. Included in the amendment was a clause that if at any time the firms shares traded above $0.30 for 20 consecutive trading days, the debt would be converted to the 20-day volume weighted average price, less a 10% discount.
With the debt being converted early, the note has managed to be converted at the 9 day volume weighted average price with no discount, enabling CB2 to enjoy a $0.38 conversion price, resulting in less dilution. As a result, 10,412,250 common shares of the company have been issued to satisfy the debt, while also removing approximately $500,000 in future interest obligations.
The conversion of the debt removes all long term debt from the firms books, putting it in a much better financial position. Combined with the recently completed financing for $5.13 million, CB2 is in a strong financial position. The company is currently anticipating profitability to occur again in the third quarter of 2020, while also forecasting strong growth organically as it continues to expand its primary care services in the US via both telemedicine and physical clinics.
CB2 Insights last traded at $0.49 on the CSE.
Information for this briefing was found via Sedar and CB2 Insights. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.