Monday, June 2, 2025

Latest

Zenabis Sees Partial Conversion of Debt at Heavily Reduced Rate

Zenabis Global (TSX: ZENA) appears to be doing what it can to bolster its dire financial situation. This morning, the firm announced the early conversion of certain convertible notes at a heavily reduced conversion price as a means of releasing some pressure on the heavily negative working capital of the company.

In total, Zenabis has seen $6,040,176 of its secured convertible notes converted to common shares at a price of $0.155 per share, but it hasn’t come cheap. In total, 38,968,874 common shares were issued in conjunction with the reduced conversion price. The company has also issued a total of 20,129,338 common share purchase warrants, which have an exercise price of $0.20 and a term of three years.

In an attempt to further reduce capital strains currently faced by the company, Zenabis has also offered the note holders the option to convert a further $4,064,558 at the lowered exercise price over the next 30 days. The company has provided the same warrant incentive as well as a means to entice the conversion of the debt. If it were to be accepted, a further 26,222,947 common shares would be issued to the note holders, along with an additional 1,260,260 common share purchase warrants.

As it currently stands, Zenabis Global still owes an aggregate of $11,364,783 to the secured convertible note holders. The debt has been extremely costly for Zenabis, who issued the debt in October 2018, for aggregate proceeds of $27.5 million, with a conversion price of $2.52. The company has continually renegotiated with the debt holders as the equity has seen its value fall through the floor. The debt is believed to be due in June 2020.

Zenabis Global last traded at $0.18 on the TSX.


Information for this briefing was found via Sedar and Zenabis Global. 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.

Video Articles

First Majestic Silver: The Santo Nino Discovery

Avino Silver Q1 Earnings: The Record Streak Continues!

Aya Gold & Silver Q1 Earnings: From Kitchen Sink to Record Results

Recommended

First Majestic Silver: The Santo Nino Discovery

Brazil Potash Completes Site Prep For Port Terminal

Related News

Ex-CEO of Zenabis Global Dumps 37% of Position Before Rights Offering Record Date

It appears even insiders at Zenabis Global (TSX: ZENA) view its current rights offering as...

Monday, November 4, 2019, 10:25:34 PM

Zenabis Posts Revenues of $27.4 Million, Loss of $15.8 Million For Q2 2020

Zenabis Global (TSX: ZENA) reported their second quarter 2020 financials results this morning, with mixed...

Friday, August 14, 2020, 09:09:30 AM

Zenabis Global Manages To Push Off Further Debt Maturities

Zenabis Global (TSX: ZENA) this morning announced further changes to outstanding debt that was coming...

Thursday, June 4, 2020, 08:37:47 AM

Sundial: SNDL Growers’ Wild Ride

SNDL is a NASDAQ-listed stock, printed by the treasury of a company (Sundial Growers) that...

Thursday, February 11, 2021, 11:45:00 AM

Zenabis Global Evidently Facing Over Supply Conditions

Zenabis Global (TSX: ZENA) issued its September production figures today, identifying that the firm continues...

Monday, October 21, 2019, 06:48:52 PM