Inner Spirit Holdings closes C$9.3 million offering of convertible debenture units
On May 24, 2019, Inner Spirit Holdings Ltd. ("Inner Spirit") announced the closing of its previously announced offering of secured convertible debenture units of the company for aggregate gross proceeds of $9,270,000. The offering was made through a syndicate of agents, co-led by Acumen Capital Finance Partners Limited, as sole bookrunner, and Canaccord Genuity Corp.
Each debenture unit consisted of (i) one 12% senior secured convertible debenture of the company in the principal amount of $1,000 with interest payable semi-annually in arrears on June 30 and December 31 of each year, commencing June 30, 2020, and maturing on June 30, 2022, and (ii) 2,000 common share purchase warrants of the company, each warrant entitling the holder thereof to purchase one common share in the capital of the company at an exercise price equal to $0.25 for a period of eighteen months following the date hereof.
The company intends to use the proceeds of the Offering to build out and provide inventory for additional wholly-owned corporate Spiritleaf retail cannabis stores in Alberta, to maintain real estate leases in Ontario, to design and produce Spiritleaf custom inventory for Spiritleaf franchise partners, and for working capital purposes.
Inner Spirit is establishing a network of recreational cannabis stores under its Spiritleaf brand. It has more than 100 franchise agreements in place for potential Spiritleaf locations and plans to operate corporate outlets in certain jurisdictions.
Further information can be found on Canada Newswire's website.