Liberty to offer an extension of maturity date to existing debenture holders
TORONTO, Oct. 26, 2020 /PRNewswire/ - Liberty Health Sciences Inc. (CSE: LHS) (OTCQX: LHSIF) www.libertyhealthsciences.com ("Liberty" or the "Company"), a provider of high-quality cannabis, announced today that it is offering all holders of 12% Senior Secured Convertible Debentures (the "Debentureholders") a 12-month extension to the original November 22, 2020 maturity date (the "Extension Option") that were originally issued on November 22, 2017 (the "Debentures").
The Debentures were originally issued pursuant to a private placement offering, which closed on November 22, 2017 for gross proceeds of US $12 million (the "Offering"). The proceeds of the Offering were used to finance the Company's expansion of its Florida operation and increase the Company's production and growing space. The Company repaid an aggregate principal amount of US $6 million in December 2019, and there is currently an aggregate principal amount of US $6 million outstanding.
Debentureholders who select the Extension Option will have the terms of their Debentures amended as follows:
the applicable per share conversion price at which the Debentures may be converted by the holders, in whole or in part, into common shares of the Company, will be reduced from CDN $2.00 to CDN $0.85;
the interest rate will be increased from 12% to 13% per annum;
the redemption price, being the price at which the Debentures may be redeemed for cash, will be reduced to 100% (expressed as a percentage of the principal amount to be redeemed) plus accrued and unpaid interest as of the date of any such redemption; and
the maturity date of the Debentureholders will be extended to November 22, 2021.
Those Debenture holders who do not select the Extension Option or that make no selection by the applicable deadline of November 10, 2020 will have their Debentures repaid at the current maturity date of November 22, 2020 in accordance with their terms. The Company expects to repay those Debentures that are maturing and tendered for repayment on November 22, 2020 out of existing funds, available credit facilities or as a result of a concurrent issue of new debentures. The Extension Option is subject to the receipt of all applicable regulatory and stock exchange approvals.
About Liberty Health Sciences Inc.: Liberty is the cannabis provider committed to providing a high-quality cannabis experience based on our genuine care for all cannabis users and a focus on operational excellence from seed to sale. For more information, please visit: www.libertyhealthsciences.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements within the meaning of applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "believe", "plan", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements regarding the Extension Option and the sources of repayment of those Debentures tendered on November 22, 2020. There is no certainty that the transactions will be completed by the anticipated closing date or at all.
Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the medical marijuana industry in the United States generally, income tax and regulatory matters; the ability of Liberty to implement its business strategies; competition; crop failure; currency and interest rate fluctuations and other risks. Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
The Canadian Securities Exchange does not approve or disapprove of the contents of this release.