Yesterday, Maple Leaf Green World (OTC:MPEFF) (TSXV:MGW) announced that they had arranged for a non-brokered private placement of convertible debentures for an aggregate principal amount of up to $2,000,000 CAD. This is equivalent to roughly $1,509,263 USD at current exchange rates.
Maple Leaf's U.S. Plans
This private placement deal is exciting for the Canadian cannabis company, as the proceeds of this deal are expected to fund Maple Leaf's Las Vegas, Nevada and San Diego, California marijuana projects. Just last week, Maple Leaf announced that they had brought master cultivator Matt Berger on board as Chief Grower on board for their Las Vegas project. This may be the first of many Canadian cannabis companies to see that many states within the U.S. are ripe with opportunity for an established player in the space.
Debenture Details
The debentures will bear interest from the closing date at 8% per year, payable semi-annually on the last days of June and December respectively.
The debentures will mature two years after the closing date.
The debentures are convertible into common stock in Maple Leaf any time before the close of business on the maturity date.
The conversion price will be $0.70 CAD per share of common stock, subject to adjustment.
Shares of TSXV:MGW are trading at $0.65 CAD per share at the time of writing.
4 months and 1 day following the closing, Maple Leaf has the right to force conversion of outstanding debentures if the daily volume weighted average price (VWAP) is higher than or equal to $1.20 CAD per share for 10 consecutive trading days.
The debentures are secured by all of Maple Leaf's assets.
Any issued shares as a result of the deal will be subject to a 4 month and 1 day holding period.
The deal is still subject to regulatory and exchange approvals.
Conclusion
For more news, stock charts, and company information on Maple Leaf Green World, check out their stock profile in our TSXV Listed Marijuana Stocks Database. For Maple Leaf Green World's press release regarding the debentures, click here.
