Stem Holdings, Inc. STMH STEM, a vertically integrated cannabis operator, intends to complete a private placement of a $250,000 unsecured promissory note and 250,000 common share purchase warrants to an arm’s length lender. The offering is expected to close on November 11, 2022.
The note terms provide for it to become due and payable in three months, subject to extension by the company for an additional three months upon payment of a $5,000 extension fee to the lender. The note bears interest at rate of 10% per annum payable at maturity. The company may prepay the outstanding principal amount of the note together with all accrued and unpaid interest, without penalty, at any time prior to the maturity date of the note.
Each warrant entitles the holder thereof to purchase one common share at a price of $0.05 for a period of thirty-six months after closing of the offering. The net proceeds from the issuance will be used for working capital and for general corporate expenses. The warrants and warrant shares will be subject to a hold period of four months and one day from the date of closing of the offering in accordance with applicable Canadian securities laws.
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