Ionic Brands (CSE: IONC) announced yesterday evening that the much awaited convertible debenture offering has closed for the equity, for total gross proceeds of $19,759,000. A portion of the proceeds were a brokered offering, while identical terms were used in a non-brokered format as well.
The convertible debt offering, announced on April 9, has been the topic of focus in relation to Ionic Brands as of late. The offering consisted of units of $1,000 principal amount of unsecured debentures bearing 8.0% interest, which are convertible into common shares at a price of $0.75 per common share, maturing on May 16, 2022.
The net proceeds from the Offering will be used for strategic acquisitions and for general and corporate working capital purposes.
Each unit also consisted of 1,333 common share purchase warrants, which entitle the holder to purchase shares of the company at $0.90 until May 16, 2022.
Ionic Brands may also force the conversion of the convertible debentures in the event that the daily volume weighted average price exceeds $1.50 for five consecutive trading days.
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A statutory four month hold is in effect until September 17, 2019, meaning any debentures or warrants, or common shares that were converted in relation to the offering cannot be sold until this date.
Net proceeds are to to be used for strategic acquisitions, and general and corporate working capital purposes.
Ionic Brands closed at $0.44 yesterday, down $0.12, or -20.54%.
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