Zenabis Global (TSX: ZENA) this morning announced further changes to outstanding debt that was coming due in the near term. The company has managed to push out the maturity date of certain subordinated secured convertible notes, which were originally ussed in late 2018 and have since been amended twice.
The debt in question consists of a principal amount of $11.4 million, which were expected to mature on June 30, 2020. Now, this date has been moved to March 31, 2021, however 40% of the debt must be paid on September 30, and another 40% must be paid on December 31.
Further, 22.88% of the currently outstanding notes will be immediately converted into common shares of the company, resulting in a further 25.4 million shares being issued at a price of $0.10232 each. Accrued interest must be paid in cash on the date of the share issuance. A refinancing fee of 5% of the remaining principal amount in each note must also be paid, however that is due on the new maturity date.
Zenabis must also grant the right to participate in future equity financings to each noteholder for any euity raised before March 31, 2020.
The announcement follows the late April 2020 news that the company had managed to extend the maturity on $50 million in senior secured debt. It remains unclear at this time what maturities occur in the near term.
Zenabis Global last traded at $0.14 on the TSX.
Information for this briefing was found via Sedar and Zenabis Global Inc. 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.
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