Avicanna To Slash Prices Of Its Warrants And Debentures, Delay Maturity Date

Avicanna Inc. AVCNF AVCN 0NN has entered agreements with the holders of convertible debentures bearing an aggregate principal amount of $1.94 million and a maturity date of January 28, 2023 and 1.06 million common share purchase warrants issued pursuant to a debenture unit financing which closed on January 28, 2022, to amend the terms of the debentures and warrants. An aggregate of $250,000 of debentures and 136,250 warrants were originally issued to insiders of the company pursuant to the debenture financing.

Pursuant and subject to the terms of the amending agreements, the exercise price of the warrants will be amended from $1.10 to $0.55 per common share of the company, and will have their expiry date amended from January 28, 2025, to January 28, 2026. debentures bearing an aggregate principal amount of $876,000 will have their conversion price amended from $0.85 to $0.40 per common share, while the remaining debentures bearing an aggregate principal amount of $1.06 million will have their maturity date extended to July 28, 2023. A total of 3.44 million common shares are issuable upon conversion of the amended debentures. The repriced debentures will be converted into an aggregate of 2.2 million common shares on or before the original maturity date.

Pursuant to the policy of the Toronto Stock Exchange the warrant amendments with respect to the insider warrants are subject to approval of the disinterested shareholders of the company, which the company intends to seek at its next annual and special meeting of shareholders. The warrant amendments and debenture amendments remain subject to the approval of TSX.

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