Doja Cannabis ar­ranges $15-mil­lion deben­ture of­fer­ing

Stockwatch Daily - - CONSUMER GOODS - Mr. Trent Kitsch re­ports

DOJA CANNABIS Com­pany Ltd. has en­tered into an agree­ment with Canac­cord Ge­nu­ity Corp., as lead un­der­writer on be­half of a syn­di­cate of un­der­writ­ers, pur­suant to which the un­der­writ­ers have agreed to pur­chase, on a bought-deal, pri­vate-place­ment ba­sis, 15,000 units of the com­pany, each ini­tial unit com­pris­ing one se­nior un­se­cured con­vert­ible deben­ture of the com­pany and 403 com­mon share pur­chase war­rants of the com­pany in the cap­i­tal of the com­pany at a price of $1,000 per unit for ag­gre­gate gross pro­ceeds of $15-mil­lion.

Each con­vert­ible deben­ture shall be con­vert­ible into com­mon shares of the com­pany at a price of $1.24 per share for a pe­riod of three years fol­low­ing the clos­ing date (as de­fined herein). Each war­rant en­ti­tles the holder to ac­quire one com­mon share at a price of $1.86 for a pe­riod of three years from the clos­ing date.

The con­vert­ible deben­tures shall bear sim­ple in­ter­est at a rate of 8.0 per cent per an­num from the date of is­sue and payable semi-an­nu­ally in ar­rears on the last day of De­cem­ber and June in each year, com­menc­ing June 30, 2018. In­ter­est will be com­puted on the ba­sis of a 360-day year com­posed of 12 30-day months. The June 30, 2018, in­ter­est pay­ment will rep­re­sent ac­crued in­ter­est for the pe­riod from the clos­ing date to June 30, 2018.

The un­der­writ­ers shall have the op­tion to ac­quire up to an ad­di­tional 2,250 units on the same terms as the ini­tial units for ad­di­tional gross pro­ceeds of up to $2.25-mil­lion, ex­er­cis­able by Canac­cord Ge­nu­ity (on be­half of the un­der­writ­ers) at any time up to 48 hours prior to the clos­ing date. The un­der­writ­ten of­fer­ing to­gether with the un­der­writer op­tion con­sti­tutes the of­fer­ing.

The con­vert­ible deben­tures will be se­nior un­se­cured obli­ga­tions of the com­pany and rank pari passu in right of pay­ment of prin­ci­pal and in­ter­est with all other con­vert­ible deben­tures is­sued un­der the of­fer­ing and all pre­vi­ously ex­ist­ing se­nior un­se­cured in­debt­ed­ness of the com­pany.

The con­vert­ible deben­tures and the war­rants com­pris­ing the units and any com­mon shares is­suable upon con­ver­sion or ex­er­cise thereof, as ap­pli­ca­ble, will be sub­ject to a statu­tory hold pe­riod last­ing four months and one day fol­low­ing the clos­ing date.

Be­gin­ning on the date that is four months plus one day fol­low­ing the clos­ing date, should the daily vol­ume-weighted av­er­age trad­ing price of the com­mon shares be greater than $1.86 for any 10 con­sec­u­tive trad­ing days on the Cana­dian Se­cu­ri­ties Ex­change, the com­pany may give no­tice to all hold­ers of out­stand­ing con­vert­ible deben­tures of the manda­tory con­ver­sion of all of the then-out­stand­ing con­vert­ible deben­tures at the con­ver­sion price, such con­ver­sion tak­ing place not less than 30 days af­ter the date of the no­tice.

The com­pany in­tends to use the net pro­ceeds of the of­fer­ing for cap­i­tal projects and for gen­eral cor­po­rate pur­poses. Clos­ing of the of­fer­ing is ex­pected to oc­cur on or about Dec. 28, 2017. The of­fer­ing is sub­ject to certain con­di­tions in­clud­ing, but not lim­ited to, the re­ceipt of all nec­es­sary reg­u­la­tory and stock ex­change ap­provals, in­clud­ing the ap­proval of the ex­change.

About Doja Cannabis Com­pany Ltd.

Doja is a premium cannabis life­style brand grow­ing high-qual­ity hand­crafted cannabis flower. Doja’s wholly owned sub­sidiary is a li­censed pro­ducer of cannabis un­der the ACMPR that has re­quested its pre­sale s li­cence in­spec­tion, the last step prior to re­ceiv­ing a li­cence to sell cannabis un­der the ACMPR. Doja’s state-of-the-art ACMPR-li-censed pro­duc­tion fa­cil­ity is lo­cated in the heart of Bri­tish Columbia’s pic­turesque Okana­gan Val­ley. Doja was founded by the proven en­tre­pre­neur­ial team that started SAXX Un­der­wear.

We seek Safe Har­bor.

Jef­frey Bar­ber, Patrick Brauck­mann, Ryan Thomas Fore­man, Wil­liam Trent Kitsch, Ste­wart Thorn­hill

(DOJA) Shares: 58,752,930

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