Liberty Health Looks To Extend November Debentures By Twelve Months

Liberty Health Sciences (CSE: LHS) this morning announced that it is offering to extend its 12% senior secured convertible debentures for a period of twelve months. Initially set to expire November 22, 2020, the company is offering to extend them through to 2021.

Originally issued in November 2017, the debentures at time of issuance had a face value of US$12 million. However, the company has since paid down half of the principal in December 2019, with approximately half of the original debentures remaining outstanding.

In connection with the offered extension, the company has indicated that the terms of the debt will be modified slightly, with the conversion price dropping from C$2.00 to C$0.85, while the interest rate will rise to 13% per annum from 12%. The redemption price will also be reduced to 100% of the face value of the principal plus accrued and unpaid interest.

Debt holders will have until November 10, 2020 to make a decision on whether or not to accept the extension. Those that make no selection will see their debt repaid on the original timeline, with the company financing such event via cash on hand, credit facilities, or potentially through funds collected from a new debenture.

The company last reported a cash position of $31.0 million as of May 31, 2020.

Liberty Health Sciences last traded at $0.49 on the CSE.

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Information for this briefing was found via Sedar and Liberty Health Sciences. 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.