VIVO Cannabis Inc. (OTCQX:VVCIF) (TSX:VIVO) has entered into an agreement dated September 15, 2022 with the majority beneficial owner of its outstanding unsecured convertible debentures dated February 28, 2018 in the aggregate principal amount of CA$5.5 million ($4.13 million) to amend the terms of the debentures.
“We are pleased to have reached an agreement which mitigates our financial risk profile while allowing us to fulfill our obligations” stated Ray Laflamme, CEO of VIVO. “This transaction provides flexibility for VIVO in the current market conditions to concentrate on our core objectives.”
The proposed amendments provide for, among other things:
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The extension of the maturity date from September 15, 2022 to September 15, 2024.
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An increase of the interest payable on the debentures from 6.0% to 10.0%.
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The prepayment of debentures in the aggregate principal amount of CA$3 million, on a pro rata basis, in CA$500,000 installments, with the first such payment to be made within three business days after the execution of the supplemental indenture and the balance to be made every 30 days after the date of the supplemental indenture.
The implementation of the amendments is subject to receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange, and the company entering into a third supplemental debenture indenture reflecting the amendments with TSX Trust Company, the trustee under the debenture indenture, which the company expects will be entered into prior to month end.
Photo by Mackenzie Marco on Unsplash
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