Fire & Flower Holdings Corp, today announced amendments to its 8.0% unsecured convertible debentures due on July 31, 2020
Fire & Flower has forced the conversion of debentures to eliminate the interest payments associated with such debentures and the removal of these liabilities from the Company's balance sheet further strengthens Fire & Flower's financial position.
With the consent of the two holders of the Debentures, the provisions of the amended and restated debenture indenture dated February 13, 2019, as supplemented, have been amended to provide for the forced conversion of the principal amount of Debentures by the Company at its sole discretion in the event the common shares of the Company (the "Common Shares") have a closing trading price of not less than $0.70.
Concurrently with the amendments, the Company has delivered a notice to force the conversion of all remaining principal amount of Debentures and accrued and unpaid interest thereon.
In connection with the conversion of the principal amount of Debentures, the Company expects to issue an aggregate of approximately 12,173,912 Common Shares.
Subject to adjustment to reflect the number of Common Shares issued in respect of the accrued and unpaid interest on the Debentures.
"Fire & Flower is laser focused on its goals for 2020, including a strong balance sheet that positions the Company for growth in a challenging capital market for cannabis companies" Trevor Fencott, Fire & Flower's Chief Executive Officer.
"The forced conversion of the Debentures removes this debt from the Company's balance sheet and limits the ongoing interest payments associated with the Debentures."
Disclaimer: Past performance is not an indicator of future performance.
This could be one of the best investing opportunities of 2020
Legislative changes are blowing through the US, and with it, an ever-increasing number of states legalising cannabis for recreational use.
With the success seen in Illinois, which legalised for adult-use on January 1 and saw products moving off the shelf at an unprecedented rate, this company is primed to take advantage of the booming US recreational market.
They have secured partnerships with the biggest cannabis companies in the US, and their portfolio is second to none.
And with the sector-wide pullback of 2019, this company is now at a bargain-basement price.
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