Hiku Brands Company Ltd. (“Hiku”) (CSE:HIKU), Canada’s first vertically-integrated cannabis brand house, announces that it is offering the opportunity (the “Early Conversion Opportunity”) for eligible holders of 8% unsecured convertible debentures of Hiku due December 28, 2020 (the “Debentures”) to elect to convert their Debentures during the period (the “Early Conversion Exercise Period”) between May 17, 2018 and 5:00 p.m.(Toronto time) on June 7, 2018 (the “Early Conversion Deadline”) at the Conversion Price (as such term is defined in the Indenture (as defined below)) and in return receive an additional 250 common share purchase warrants of Hiku (the “Early Conversion Warrants”) per $1,000 of principal amount of Debentures converted, in addition to the common shares of Hiku (the “Common Shares”) to be received in connection with such conversion.
The Early Conversion Opportunity is being offered by Hiku pursuant to certain amendments (the “Amendments”), made by extraordinary resolution, to the trust indenture governing the Debentures between Hiku and AST Trust Company (Canada) (the “Trustee”) dated December 28, 2017 (the “Indenture”). The Amendments were effected today pursuant to a supplemental indenture to the Indenture between Hiku and the Trustee, the full text of which will be available on Hiku’s SEDAR profile at www.sedar.com.
Under the Early Conversation Opportunity, eligible beneficial holders of Debentures who elect to convert their Debentures during the Early Conversion Exercise Period prior to the Early Conversion Deadline will be entitled to receive Early Conversion Warrants. Each Early Conversion Warrant will be exercisable into one Common Share until 5:00 p.m.(Vancouver time) on May 16, 2021 at a price of $1.50 per Common Share, subject to adjustment in certain events. The Early Conversion Warrants will be issued on a private placement basis only to “accredited investors” (as such term is defined in National Instrument 45-106 – Prospectus Exemptions) and U.S. Accredited Investors (as such term is defined in the Indenture) and will be issued pursuant to a warrant Continue Reading