United Cannabis Corporation (OTC:CNAB) announced that they retired a $600,000 note payable to Sláinte Ventures, and it was converted to shares of CNAB common stock.
Sláinte Ventures converted the entire principal amount of the note payable into 594,540 shares of the Company's common stock. This was calculated based on the following:
"The number of shares to be issued upon a conversion of the note was determined by dividing the dollar amount of the principal to be converted by the Conversion Price. The Conversion Price was 70% of the average closing price of the Company's common stock for the ten business days immediately preceding the date of the Conversion"
Warrant Instead of Interest
In addition to the principal note amount that was due, there is a warrant in lieu of interest due on the loan was issued to Sláinte. The warrant is exercisable at a price of $0.18 per share and can be exercised at any time during the five year period ending on November 30, 2021.
Beyond the common stock received from conversion of the note's principal and the outstanding in-the-money warrant that Sláinte has, they also announced that they recently purchase 104,939 shares of CNAB common stock for $100,000.
The combined stake mentioned in this article is a little shy of 1.5% of United Cannabis Corporation based on 47.06 million shares outstanding as of September.
We believe the conversion of the note payable into common stock, as well as the further investment made by Sláinte is a vote of confidence in the company. For more information and recent coverage on United Cannabis Corp. be sure to check out CNAB's stock profile in our Marijuana Stocks Database.
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For more information on CNAB's note payable announcement, check out their press release here.