Hydropothecary Announces Conversion of $25.1 Million Debentures
GATINEAU, QC–(Marketwired – November 22, 2017) – The Hydropothecary Corporation (“THCX” or the “Company”) (TSX VENTURE: THCX) announced today that it has elected to exercise its right under the indenture dated July 18, 2017 (the “Indenture”) governing the Company’s 8.0% unsecured convertible debentures due June 30, 2019 (the “Debentures”) to convert all of the outstanding principal amount of the Debentures and unpaid accrued interest thereon (the “Conversion”) into common shares of the Company (the “Common Shares”).
Pursuant to the terms of the Indenture, THCX became entitled on November 19, 2017 to force conversion of the Debentures on the basis that the volume weighted average price (“VWAP”) of the Common Shares on the TSX Venture Exchange for 15 consecutive trading days was equal to or exceeded $2.25. For the 15 consecutive trading days preceding November 19, 2017, the VWAP of the Common Shares was $2.56.
The Company has provided the holders of the Debentures with 30 days advance written notice of the Conversion, and the effective date for the Conversion will be December 27, 2017.
Pursuant to the Conversion, holders of Debentures will receive 625 Common Shares for each $1,000 principal amount of Debentures held. In addition, the accrued and unpaid interest on the Debentures for the period from issuance on July 18, 2017 to but excluding the conversion date will be equal to $36.00 and Debenture holders will receive an additional 22 Common Shares for each $1,000 principal amount of Debentures held on account of accrued and unpaid interest, for a total of 647 Common Shares for each $1,000 principal amount of Debentures held.
Debenture holders continue to have the right to convert any part of the principal amount of their Debentures in accordance with the procedures set out in the Indenture and the certificates representing the Debentures at any time prior to the effective date for the Conversion. In the event that Debentureholders convert their Debentures prior to such date, they will receive accrued and unpaid interest thereon in cash.
About The Hydropothecary Corporation
The Hydropothecary Corporation is an authorized licensed producer and distributor of medical cannabis licensed by Health Canada under the Access to Cannabis for Medical Purposes Regulations (Canada). Hydropothecary provides sungrown and rigorously tested medical cannabis of uncompromising quality. Hydropothecary’s branding, cannabis product offering, patient service standards and product pricing are consistent with Hydropothecary’s positioning as a premium brand for a legal source for medical cannabis within this new marketplace. In addition to medical cannabis production and sales, Hydropothecary explores various research and development opportunities for cannabinoid extracts, drugs and combinatory chemistry. In addition, the company is investigating the development and patenting of novel technologies related to medical cannabis, as well as the import and export of medical cannabis.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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