Harvest Health & Recreation (CSE: HARV) this morning announced that it will be conducting a financing in the form of secured notes, of which it has received commitment letters for at least US$90 million. Harvest has received signed commitments from a group of lead investors to subscribe for this amount, while the offering may in fact close with additional investment dollars.
The offering will be conducted on a private placement basis and consist of a) senior secured notes, referred to as the coupon notes, and b) units consisting of US$1,000 in senior secured notes. Collectively referred to as the notes, each note will contain 109 common share purchase warrants, with an expiry of three years. Conversion pricing for the warrants was not provided.
The notes are to expire after a period of three years, and will contain several restrictions on the operations of Harvest. Restrictions include the incurrence of debt, asset sales, and dividends and other distributions. Harvest will also be required to repurchase the notes at an undiscloed premium in certain instances.
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The secured notes will contain a first priority security interest on specified assets of Harvest and certain subsidiaries.
The terms of the notes however are subject to change upon the signing of a definitive agreement for the financing with interested parties. A date was not provided for the anticipated closing of the financing arrangement.
The offering is expected to allow Harvest Health to expedite its expansion and operational efforts.
Harvest Health last traded at $3.37 on the CSE.
Information for this briefing was found via Sedar and Harvest Health and Recreation. 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.
