Leef Brands receives $237,000 from debenture conversion

Executive Summary

• Leef Brands Inc. completed the full early conversion of all outstanding Canadian-dollar-denominated convertible debentures, totaling approximately $237,000 in principal and accrued interest, effective December 15, 2025.
• The conversion was executed under amended incentive terms, resulting in the issuance of approximately 946,309 units to debenture holders.
• This event follows the prior full conversion of approximately $10.5 million (U.S.) in convertible debentures announced on December 5, 2025, effectively eliminating the company's remaining Canadian-dollar convertible debt.

Key Details

• Conversion Amount: Approximately $237,000 (CAD) covering principal and accrued/unpaid interest.
• Conversion Price: 25 cents per unit.
• Units Issued: Approximately 946,309 units.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms: Exercisable at $0.30 per share for a period of 36 months.
• Previous Conversion: Follows the conversion of ~$10.5 million (USD) in convertible debentures on Dec. 5, 2025.
• Balance Sheet Impact: Eliminates remaining Canadian-dollar convertible debenture debt.
• Remaining Debt: Two real estate notes remain:
  • $4.2 million note at 4% interest.
  • $7 million note at 0% interest.
• Additional Equity Activity: 6,081,053 restricted share units (RSUs) were exercised and settled into common shares.
• Operational Context: Company reported 24% year-over-year revenue growth and a doubling of gross margins in Q3.

Notable Quotes

• "With this milestone, the convertible debenture that originally helped capitalize the company has now been fully eliminated from our balance sheet... This marks the start of a new chapter, giving us the flexibility to strengthen and leverage our balance sheet as needed to support future growth and create long-term value." — Micah Anderson, Chief Executive Officer