Sugarbud Announces Amended Terms of Marketed Public Offering of Convertible Debenture Units
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Last update: Apr 22, 2022
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CALGARY, Alberta, April 22, 2022 (GLOBE NEWSWIRE) -- Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT, SUGR.WS, SUGR.WR, SUGR.DB) (OTCQB: SBUDF) ("Sugarbud" or the "Company") announces that it has agreed to amend the terms of its previously announced marketed public offering (the “Offering”) of convertible debenture units (each a "Debenture Unit") to: (i) lower the conversion price at which the convertible debentures of the Company (each a “Convertible Debenture”) are convertible into common shares of the Company (“Common Shares”) from $1.29 to $1.00 per Common Share, representing the closing market price of the Common Shares on April 21, 2022, (ii) lower the exercise price at which the Common Share purchase warrants of the Company (each a “Warrant”) will be exercisable from $1.29 to $1.00 per Warrant, (iii) revise the number of warrants per Debenture Unit from 775 Warrants to 1,000 Warrants, (iv) revise the frequency of interest payment dates such that interest payments will be payable semi-annually, rather than quarterly, (v) revise the make-whole provision such that, upon conversion of the Convertible Debentures, the Effective Interest (as defined herein) shall be payable in units of the Company (each a “Unit”), each such Unit consisting of one Common Share and one Warrant. Each Warrant underlying a Unit will entitle the holder thereof to acquire one Common Share at an exercise price equal to the daily volume weighted average trading price for the 20 trading days preceding the date of the conversion election, at any time up to 5 years following the date of such election, and (v) make the Convertible Debentures subordinate to the outstanding convertible debentures of the Company issued in June 2020 in the principal amount of $138,000. The remainder of the terms of the Offering continue without further amendment. The Offering is being led by Research Capital Corporation as the sole agent and sole bookrunner (the “Agent”).
