Kelowna, British Columbia–(Newsfile Corp. – November 12, 2020) – Fiore Cannabis Ltd. (CSE: FIOR) (OTCQX: FIORF) (“Fiore” or “Company”), a licensed multi-state Cannabis cultivator, producer and retailer, is pleased to announce that it has reached an agreement with the debentures holders to amend the terms of the Convertible Debentures in the principal amount of $2.6 million which matured on October 23, 2020 (the “Debentures”). The Debentures are unsecured, bear interest at 10% per annum and are convertible into units of the Company at a price of $0.70 per unit.
The parties agreed to amend the Debentures on the following terms:
The maturity date will be extended from October 23, 2020 to October 23, 2022; All accrued and unpaid interest from the period from October 24, 2019 to January 23, 2021 will be paid in cash or in common shares of the Company at $0.09, at the discretion of the Company, on January 23, 2021. All interim interest payment shares shall be subject to a four month plus 1 day hold period; The conversion price will be reduced from $0.70 to $0.25 per unit; Two common share purchase warrants will be issued upon conversion of debenture. The warrant exercise price will be $0.15 per share expiring October 23, 2022; Interest will be paid in cash on the anniversary date and maturity date; The Company, upon providing ten prior business days’ notice to the debenture holders in writing, may, at its option, on any one or more occasion, redeem and prepay all or a part of the principal amount.
All other terms of the Debentures remain the same.
The Company received more than 66.67% written consents from the Debenture holders. Pursuant to the terms of the Debentures, the amendment approved shall be binding upon the holders.
About Fiore Cannabis Ltd.