Columbia Care Inc. (CSE: CCHW) announced Thursday evening that it will be conducting a senior note offering. The offering is to consist of 6.00% senior secured convertible notes that are due in 2025. The company intends to raise up to US$74.5 million in aggregate principal amount.
The senior secured notes will accrue interest payable semi-annually until the maturity date on June 29, 2025. The notes are also convertible to common shares at a conversion rate of 154 common shares for each US$1,000 principal amount, effectively pricing the common shares at US$6.49 per share.
The company said this conversion share price represents a 25% premium over the closing price on June 17, 2021.
The offering is on a “best-effort” basis per the agreement Columbia Care made with a syndicate of agents led by Cannacord Genuity and ATB Capital Markets.
The company expects the offering to close on June 29, 2021, subject to customary regulatory and closing approvals. Proceeds from the offering are to be used for working capital and general corporate purposes.
Columbia Care Inc. last traded at $6.41 on the CSE.
Information for this briefing was found via Sedar and Columbia Care Inc. 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.