Red White & Bloom (CSE: RWB) this morning announced the completion of a US$6.12 million debenture financing. The financing was conducted with a single investor on an arms-length, private placement basis.
The company is clear in indicating that the debt is not convertible, and was issued on an unsecured basis. The debenture bears interest at a rate of 7% per annum, with both principal and interest due on April 1, 2022.
Proceeds from the financing are to be used for the expansion of its Platinum Vape operation as it preps for an Arizona launch, for certain pre-closing operational plans for THC Cultivation Centre License and Associated Assets in the state of Illinois, and for general working capital and corporate purposes.
1.0 million common share purchase warrants were issued in connection with the financing, which are valid for a period of two years from the date of issuance and contain an exercise price of $1.20 per common share.
Net proceeds after associated fees is stated to be $6.0 million.
Red White & Bloom last traded at $1.29 on the CSE.
Information for this briefing was found via Sedar, Red White & Bloom Brands and Hightimes 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.
