Harvest Closes First Trance of Convertible Debenture Financing

Harvest Health & Recreation (CSE:HARV,OTCQX:HRVSF) announced the closing of the first tranche for a brokered private placement of seven percent unsecured convertible debentures of the company at a price of US$1,000 per debenture for proceeds of US$100 million.

As quoted in the press release:

The Convertible Debentures have a maturity date (the “Maturity Date”) of May 9, 2022 and bear interest from the date of issue at 7.0 percent per annum, payable semi-annually on June 30 and December 30 of each year. The Convertible Debentures are convertible, at the option of the holder, into subordinate voting shares of the Company (“Subordinate Voting Shares”) at any time prior to the close of business on the last business day immediately preceding the Maturity Date. The Convertible Debentures have a conversion price of US$11.4198723 (the USD equivalent of CDN$15.378, based on the Bank of Canada CAD/USD exchange rate as of May 8, 2019) per Subordinate Voting Share (the “Conversion Price”). The purchaser of the Convertible Debentures also received, for no additional consideration, 3,502,666 warrants (the “Warrants”). Each Warrant is exercisable to purchase one Subordinate Voting Share at an exercise price of CDN$18.17 per share, for a period of 36 months from the date of issue.

“Our vision is to become the most valuable cannabis company in the world and this transaction will help fuel Harvest’s growth,” said Harvest CEO Steve White. “This is a particularly acquisitive time in the industry and access to significant capital with favorable terms is crucial to long-term success.”

Click here to read the full press release.