Grown Rogue International Inc. GRUSF GRIN has closed the first tranche of a non-brokered private placement of unsecured convertible debentures with an aggregate principal amount of $5 million. Additionally, on closing, the company issued to the subscribers under the offering an aggregate of 13.7 million common share purchase warrants representing one-half of one warrant for each CA$0.24 of principal amount subscribed. The company may, at its option, increase the offering by an additional $1 million for gross proceeds of up to $6 million.
The debentures will mature four years from the date of issue, bear interest at a rate equal to 9% per annum, payable in United States currency on the last business day of the month following the end of each calendar quarter and are convertible as set forth below into common shares of the company.
Debentureholders will be entitled, at their option, to convert, at any time on or prior to the maturity date, the outstanding principal amount and accrued interest into shares at a price per share equal to CA$0.24. The company may elect to prepay the principal amount together with any interest thereon prior to the maturity date upon providing 30 days' notice to the debentureholder.
Each warrant will be exercisable into one share at an exercise price of CA$0.28 for a period of three years from the date of issue and are subject to an acceleration clause that in the event that the shares close at or above CA$0.40 per share on the Canadian Securities Exchange for ten consecutive trading days, the warrant expiry date shall accelerate to 90 days following notice of the acceleration event.
The proceeds of the offering will be used for the expansion of the company's business and for general corporate purposes.
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