Next Green Wave Holdings Announces $6.3 Million in Financings

Next Green Wave has completed an asset-backed financing with Landrace Financial for a loan in the amount of $5,300,000.

The Loan is for a two-year term. Interest on the Loan will be paid monthly in cash: at a rate of 10.5% per annum; plus the greater of 2.5% and (b) LIBOR rate; plus any default rate. The outstanding principal of the Loan and all outstanding interest thereon will be payable in full on the maturity date. In addition, the Lender will receive a total of 6,500,000 common share purchase warrants having a term of 36 months from the date the Loan is disbursed to NGW (the "Advance Date") exercisable into common shares of NGW (the "Share") at a price of CDN$0.20 per share.

Furthermore, the Company has agreed to a non-brokered private placement of 6,666,666 Shares at a price of CDN$0.15 per Share for gross proceeds of CDN$1,000,000 (the "Financing").

The parties to the Financing are all at arm's-length and there are no finder's fees payable. Closing is subject to a number of conditions, including regulatory approval. All securities will be held for a period of 4-months from closing of the Financing.

The proceeds from the Financing plus CDN$500,000 will be used to reduce outstanding unsecured convertible notes from CDN$3,000,000 to CDN$1,500,000.

Concurrent with the closing of the Financing, the Company will amend the terms of the remaining CDN$1,500,000 of convertible debentures from a conversion rate of CDN$0.388 per share to a price of CDN$0.15. 

In addition, the Company will reprice the 7,732,357 share purchase warrants previously issued with the notes (CDN$0.48) to a price of CDN$0.20 per warrant (for a period of 24 months from the date of issue), collectively (the "Re-pricing").  The Re-pricing is also subject to a number of conditions, including regulatory approval.

In addition, 1,000,000 warrants issued on Sep 12, 2019, have been re-priced from $0.35 to $0.25, all other terms remain the same.

The Company has granted 3,530,000 stock options under its stock option plan (the "Grant") exercisable at a price of CDN$0.15 per Share to a director, employees and HR consultants of the Company.  As per the Company's stock option plan, the options granted are exercisable until November 19, 2024.  The Grant has a vesting period of 25%, every 6 months, for a period of 24 months.

The Company also announces that pursuant to the SDC Purchase Agreement effective Nov 19, 2019 it has released the 16,167,092 SDC shares from escrow. 

Disclaimer: Past performance is not an indicator of future performance.

Disclaimer: past performance is not an indicator of future performance
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Niki Mohazeb
Niki Mohazeb

Niki is a Sydney based writer, with a passion for promoting the health benefits of medicinal cannabis. Niki also enjoys researching and writing about the future of cannabis along with the many other benefits that the plant provides, such as the diverse utilities of hemp.

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