Christina Lake Cannabis Corp. (CSE:CLC) (OTCQB:CLCFF) (FRANKFURT: CLB) has closed the first tranche of a non-brokered private placement of secured convertible promissory notes in the principal amount of CA$3.19 million ($2.35 million).
On Tuesday, the Vancouver, British Columbia-based cannabis company said that it has issued convertible promissory notes secured by land and buildings.
The note bears interest at a rate of 15% per annum over a term of 36 months.
Under the deal, repayment of the note shall be in the form of interest-only payments for the first 15 months of the term and a blended principal and interest payment for the remaining term.
Outstanding principal and interest from the notes will be convertible into common shares at a conversion price of $0.06 per common share during the term.
The company also has the right to redeem or repay the notes at any time during the term.
Proceeds from the offering will be used to repay outstanding debentures, working capital and general corporate purposes.
Meanwhile, Christina Lake entered the South African market via a supply deal with MG BioTech Ventures (Pty) Limited in March. Under that deal, the company agreed to supply custom formulations of medicinal cannabis oils to the South African medical cannabis market.
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CLCFF Price Action
Christina Lake's shares traded 2.4242% lower at $0.0322 per share at the market close on Monday.
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