Fire and Flower Holdings Corp (TSX: FAF) has amended the initial agreement put in place with Alimentation Couche-Tard (TSX: ATD.B) in relation to securities previously issued. Under the new agreement, maturities have been modified to enable Fire & Flower to access up to $19 million in cash by the end of 2020, months ahead of time.
A number of items under the amended agreement have been modified, summarized as follows:
- 26.0 million in debentures, originally maturing June 30, 2021, have been extended to June 30, 2023, with the conversion price capped at $0.90 per share, rather than $1.07. The debt can be repaid early via the issuance of shares at $0.75 per share.
- 30,634,322 series A common share purchase warrants, originally exercisable at $1.40 per share until 90 days after June 30, 2021, have been broken into three tranches.
- 13.1 million Series A-1 warrants will now be exercisable at $0.78 per share, and will be exercised within three days of the amended agreement.
- 10.5 million Series A-2 warrants will have an exercise price of $0.83, and an expiry of December 31, 2020.
- 10.5 million Series A-3 warrants will be exercisable at $0.93, and an expiry of June 30, 2021.
- Series B warrants will see the exercise price decline from $1.875 to the lesser of $1.875 and the 20 day volume weighted average price of the equity. Warrants are only exercisable after January 1, 2020 and expire September 30, 2022.
- Series C warrants see their exercise price capped at $3.00, rather than the previous $6.00, and are the lesser of that figure and the 20 day volume weighted average price of the equity at time of exercise. Expiry is now defined as June 30, 2023.
- All warrants expire should Alimentation not exercise a series by its deadline.
Fire & Flower Holdings last traded at $0.95 on the TSX.
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Information for this briefing was found via Sedar and Fire and Flower Holdings. 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.
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