C21 Investments Inc. (CSE:CXXI) (OTCQX:CXXIF) announced on Monday the closing of its non-brokered private placement offering of its convertible debenture units.

What Happened

Under the deal, the company issued a total of 4,000 convertible debenture units at CA$1,000 ($731.375) per convertible debenture unit for aggregate gross proceeds of CA$4 million.

Each convertible debenture unit offered under the private placement is comprised of one convertible debenture of the company in the principal amount of CA$1,000 convertible into the company's common shares and 1,000 detachable common share purchase warrants, with each warrant exercisable into one common share at CA$0.55 per share for 30 months from the issue date of the convertible debenture units.

Subject to earlier conversion, redemption or purchase, the repayment of the principal amount of the convertible debentures will be made in twenty-five equal monthly installments, each equal to the outstanding principal amount of the debentures on the issue date divided by 25, with the final payment to be made on such date that is 30 months from the issue date.

The outstanding principal amount owing under the convertible debentures will accrue interest from the issue date at the rate of 12% annually, payable quarterly in cash.

See also: Deep Roots Harvest To Acquire The Source Operation In Nevada

Why It Matters

The net proceeds will be used to fund the company's wholly-owned Nevada subsidiary, Silver State Relief, LLC's acquisition of Deep Roots Harvest, Inc.'s assets related to the operation of their 6,500 square-foot, purpose-built, operational retail cannabis dispensary located in Southern Reno, Nevada.

The $3.5 million deal, first announced in March, includes a cash payment of $100,000, which was paid to Deep Roots as a non-refundable deposit upon the execution of the agreement and a cash payment of $3.4 million to be paid to Deep Roots on closing.

Now read: Drive-Thru Cannabis Sales Help C21: Same-Store Sales Up, But Revenue Down In Q3

Meanwhile, the Nevada Supreme Court is at the center of a legal discussion that could impact the classification of cannabis within the state.

Cannabis rescheduling seems to be right around the corner on the federal level as well. Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

CXXIF Price Action

C21 Investments' shares traded 0.05% lower at $0.42 per share at the time of writing on Tuesday.