FinCanna Management Subscribes to $500,000 of the Convertible Debenture
VANCOUVER, BC / ACCESSWIRE / July 7, 2020 / FinCanna Capital Corp. ("FinCanna") (CSE:CALI)(OTCQB:FNNZF), a royalty company for the U.S. licensed medical cannabis industry announces the closing of its Convertible Debenture Financing for $2.5 million.
The subscription price is $1,000 per Unit. The Debentures will mature on February 8, 2023 and will bear interest at 12% per annum, payable in cash or, at the option of the Subscriber, in common shares of FinCanna subject to certain conditions. The Debenture is convertible into Common Shares at CAD$0.15 per share. Subscribers for Debentures will receive 5,000 common share purchase warrants for each Unit of principal amount of Debenture. Each Warrant will entitle the holder to acquire one Common Share of FinCanna for CAD$0.30 at any time up to the maturity date.
The FinCanna management team subscribed for $500,000 principal amount of the Debentures.
FinCanna intends to use the net proceeds from the Convertible Debenture to fund ongoing working capital and general corporate purposes as well selective royalty investment opportunities.
"We are very encouraged by the strong support from several key debenture holders, shareholders and management," said Andriyko Herchak, CEO of FinCanna Capital. "These additional funds together with the previously announced extension of the convertible debentures, now maturing in February 2023, have significantly strengthened our balance sheet at a time when our investees are ramping up their sales and royalties for FinCanna, which we believe will have very meaningful impact to our bottom line."
This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.
The Canadian Securities Exchange has in no way passed upon the merits of the amendments to the terms of the outstanding Convertible Debentures and Warrants and new Convertible Debenture Financing and has neither approved nor disapproved the contents of this press release.
About FinCanna Capital Corp.
FinCanna is a royalty company that provides growth capital to rapidly emerging private companies operating in the licensed U.S cannabis industry. The company earns its revenue from royalties paid by its investee companies that are calculated based on a percentage their total revenues.
FinCanna's scalable royalty model provides an attractive alternative or complement to debt or equity financing for its investee companies. FinCanna is focused on delivering high impact returns to its shareholders by way of a strategically diversified investment portfolio.
FinCanna Capital Corp.
Andriyko Herchak, CEO & Director
This news release contains forward-looking information based on current expectations. Statements about, among other things, the use of proceeds of the Convertible Debenture financing, is forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by such statements. Such factors include but are not limited to the Company may not use the proceeds of the Convertible Debenture financing as currently anticipated. Although such statements are based on management's reasonable assumptions at the date such statements are made, actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. FinCanna assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.
SOURCE: FinCanna Capital Corp.