Financings
CANADABIS CAPITAL PROPOSES REDUCTION TO CONVERTIBLE DEBENTURE CONVERSION PRICE AND ANNOUNCES INTENTION TO PAY NEXT INSTALLMENT DEBENTURE INTEREST IN COMMON SHARES
CANB · Price
Executive Summary
- CanadaBis Capital proposes to reduce the conversion price of its April 2025 convertible debentures from $0.10 to $0.075 per common share, pending TSXV approval.
- The company will satisfy the upcoming December 31, 2025 interest payment by issuing common shares rather than cash, using a pricing formula tied to recent volume‑weighted average prices (or the TSX Venture minimum permitted price).
- These actions are intended to align shareholder interests, strengthen liquidity, and preserve working capital for future growth initiatives.
Key Details
- Proposed Conversion Price Reduction: From $0.10 to $0.075 per common share; amendment would be effected via a supplemental indenture after TSXV approval.
- Interest Payment in Kind: Interest due on December 31, 2025 will be paid by issuing common shares at the greater of (i) the five‑day VWAP preceding the record date or (ii) the five‑day VWAP preceding the interest payment date; if below the TSXV minimum price, shares will be issued at that minimum.
- Pricing Mechanics: No fractional shares; any fractions are rounded down to the nearest whole share. Formal notice to the trustee will be given ≥ 15 business days before the payment date.
- Company Discretion: CanadaBis retains the right to resume cash interest payments in future periods if warranted.
- Strategic Rationale: Aligns shareholder interests, improves liquidity, and maximizes working capital for growth of its cannabis brands.
Notable Quotes
“Together, these two actions reflect our ongoing commitment to aligning shareholder interests and strengthening the Company's financial foundation… I am confident that CanadaBis will deliver meaningful success in the months and years ahead.” – Travis McIntyre, CEO.