Sproutly Canada has secured a private loan of $1 million from Infusion Biosciences, a related party of the company.
The loan carries an interest rate of 10% per annum accruing and compounding monthly, payable on maturity on or before October 24, 2020 The company anticipates using the proceeds of the Loan to support the company’s general working capital.
The loan is evidenced by a secured convertible debenture that provides the lender with the right to convert the principal of the Loan into units of the company at a conversion price of $0.19 per Unit, subject to adjustment in accordance with the terms of the convertible debenture. Each unit will consist of one common share in the capital of the company and one common share purchase warrant, with each warrant entitling the Lender to acquire one Common Share at an exercise price equal to $0.20 for a period of two years from date of issuance.
Sproutly has the right at any time prior to the maturity date to pre-pay the amount outstanding under the convertible debenture. In the event of pre-payment of the convertible debenture, the lender will be entitled to receive such number of warrants equal to the number that the lender would have been issued if the convertible debenture was converted at the conversion price.
The convertible debenture and the securities issuable upon conversion of the convertible debenture are subject to a minimum four-month hold period and restrictions on transfer under canadian securities law.
Sproutly’s core mission is to become the leading supplier to the cannabis beverage and edibles market.
