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Kelowna, B.C. based High Hampton Holdings Corp. (CSE:HC) just announced that the company has closed a $1,300,000 CAD private placement of secured convertible debentures. This is equivalent to roughly $1,025,310 USD based on current foreign exchange rates.
Related: What are Private Placements?
Back in June, High Hampton announced completion of a financing round to acquire 100% of outstanding shares in a company called Coachellagro. High Hampton Holdings intends to use this recently closed financing to fund a loan to Coachellagro Corp. for the purchase of property located in the Coachella, California.
Related: Entire California Town Purchased by Cannabis Company
In case you are not familiar with up-and-coming High Hampton Holdings, its subsidiary THC Bank provides a suite of services to licensed producers in the medical marijuana space. Specific services provided include propagation, direct cultivation and sale of purebred cultivars; cloning; and marijuana strain storage. High Hampton's second subsidiary, AGT, has continuing sales of an exclusive brand of greenhouses particularly designed for the industry.
Related: The Most Efficient Way to Heat a Greenhouse in Winter
According to High Hampton's release, "the proceeds of the Offering will be used to partially fund the Loan. The remaining proceeds from the Offering will be used to fund the Acquisition and for general working capital."
High Hampton Debenture Details
The debentures pay interest at a rate of 7.5% annually and mature two years following the date of issuance. The debentures are convertible at the holder’s option into common shares in High Hampton on a post-consolidation basis at any time prior to the close of business on the maturity date at a conversion price of $0.60 CAD per debenture share.
In addition, each of the debenture holders has received one warrant for each $1.20 CAD of the aggregate principal amount of debentures, with each warrant entitling the holder to acquire one share at an exercise price of $0.85 CAD per share for a period of three years from the date of issuance.
More to Come...
Currently, shares of High Hampton Holdings are suspended on the CSE, but we'll be sure to keep readers posted as more updates come out and as shares resume trading. Be sure to subscribe to one or more of our free newsletters so you never miss an important marijuana stock update. Also, don't forget to connect with The Daily Marijuana Observer on social media via Facebook, Twitter, and Instagram.