Debra Borchardt
Cannabis company Golden Leaf Holdings Ltd. (GLDFF) entered into an agreement with Canaccord Genuity Corp. as sole agent and bookrunner for a private placement of unsecured convertible subordinated debenture units. The deal is expected to close on or about October 4.
Golden Leaf is a Canadian company operating in multiple jurisdictions, including Oregon, Nevada, and Canada, with cultivation, production and retail operations built around recognized brands like Chalice Farms. Golden Leaf distributes its products through its Chalice Farms retail dispensaries, as well as through third-party dispensaries. Golden Leaf’s cannabis retail operations and products are designed with the customer in mind, focused on superlative in-store experience and quality products.
Terms
According to the company statement, Canaccord Genuity has been tasked with the effort to sell up to C$15 million of debenture units of Golden Leaf with each unit to be made up of one C$1,000 principal amount unsecured convertible subordinated debenture accruing interest at 12% per annum until December 31, 2019, after which date interest will decrease to 10% per annum, and be payable semi-annually until maturity, and 1,665 common share purchase warrants of Golden Leaf at a price of C$1,000 per unit, for aggregate gross proceeds of up to C$15 million. Each Debenture is convertible into common shares of the company at a conversion price of C$0.30 per common share. The Debentures will mature 36 months from the closing of the Offering. Each warrant will entitle the holder to acquire one common share at a price of C$0.40 per common share for a period of two years following the closing of the offering, subject to adjustment in certain events. The net proceeds from the offering are anticipated to be used for working capital and general corporate purposes.
In The Pipeline
Golden Leaf CEO William Simpson will present live at VirtualInvestorConferences.com on September 12, 2018. The company has recently announced a definitive agreement to acquire Tahoe Hydroponics Company and 11T Corp, a leading Nevada producer and among the first cultivators in the state. The company also acquired a “Sweet 16” combined cultivation, production, and retail license in California, facilitating vertically integrated operations near San Jose, CA and received a city and state license approval for an extraction in Portland, OR. It harvested its first crops from Medical Marijuana Group, its Canadian subsidiary, with yields that were 30% greater than originally forecasted, putting the Company in line with established cultivators. Canadian Sales License is expected imminently from Health Canada.
