Nova Leap Health Forces Conversion Of $2.2 Million Debentures
Nova Leap Health (TSXV: NLH) began the process of cleaning up its balance sheet this morning. The company has announced that it is forcing the conversion of certain outstanding 8% convertible debentures that are due December 30, 2024.
The conversion is being conducted via a clause included in the indenture, whereby the company can force the early conversion of the debt in the event that the company trades above $0.78 per share for 20 consecutive days on a volume weighted basis. As a result, $2.2 million in debt is to be converted into common shares of the issuer at a price of $0.52 per share.
The forced conversion reportedly follows $0.2 million in debentures voluntarily converting previously.
The conversion effectively cleans up a large portion of the firms current long-term liabilities, which as of September 30, 2020, amounted to $3.0 million in total. Long term debt now only appears to consist of a $0.2 million promissory note that it is outstanding. The company however does have a demand loan outstanding for $2.4 million that is marked as current as a result of the terms contained within.
Nova Leap Health last traded at $0.80 on the TSX Venture.
Information for this briefing was found via Sedar and Nova Leap Health. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
