Institutional Investors Provide Equity Commitment to Cannabis Operator C21 Investments – New Cannabis Ventures

C21 Announces Note Restructuring and Commitment for Repayment of Outstanding Convertible Debentures

Wasatch Global Investors, JW Asset Management, CB1 Capital Management and CEO Sonny Newman to Backstop Repayment of C21’s Outstanding Convertible Debentures  

VANCOUVER, BC, Nov. 19, 2020 /CNW/ – C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) (“C21” or the “Company”), a leading vertically integrated cannabis company, today announced that the principal amount of the Company’s senior secured note held by CEO Sonny Newman (“Newman Note”) has been restructured for repayment over a 30-month term.   The Company has also secured a commitment from three investment managers—Wasatch Global Investors, JW Asset Management and CB1 Capital Management—who, in addition to CEO Sonny Newman, will provide an equity commitment for repayment of all of the Company’s existing convertible debentures which remain outstanding at maturity. All figures are in U.S. dollars unless otherwise noted.

Highlights:

The remaining principal amount of $15.2 million under the Newman Note, currently due to mature on January 1, 2021, has been restructured and will be amortized over a 30-month term at the existing interest rate of 9.5% with lower monthly principal payments. Wasatch Global Investors, JW Asset Management and CB1 Capital Management, three well-respected investment managers, and C21 CEO Sonny Newman (collectively the “Investors”) have made a commitment to fund any remaining amounts outstanding at maturity of the Company’s convertible debentures that are due on December 31, 2020 and on January 30, 2021. Funds advanced by the Investors will be in exchange for common shares to be issued at a price equal to the existing debenture conversion terms of C$0.80 per common share. A total of C$8.2 million of these debentures are currently outstanding.

We are pleased that Sonny will be extending the maturity of his senior secured note for a full 30 months until June 2023.  We are also excited to announce this transformative agreement with our three strategic partners which reflects their confidence in

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