Cannabis Co. Vext Announces Debt Conversion, Opens Door To 27 Million Shares For Investors

Vext Science, Inc. VEXT VEXTF announced on Thursday that it has entered into definitive agreements with holders of the company’s existing 11.25% secured non-convertible debentures.

Under the deals, the debenture holders will convert all of the outstanding $4.6 million principal amount of debentures, together with accrued and unpaid interest up to Dec. 31, 2023, and a 2.5% conversion incentive fee, for an aggregate of 27,700,625 common shares of the company.

Transaction Details

Under the conversion agreements, Vext agreed to issue to the debenture holders an aggregate of 27,700,625 common shares in satisfaction of the outstanding $4.6 million principal amount of debentures, together with accrued and unpaid interest up to Dec. 31, 2023, and the conversion fee, at a deemed price of $0.175 per share.

Closing of the conversion transaction remains subject to customary conditions precedent, including regulatory approval, and is expected to occur as soon as practicable.

Upon closing of the conversion transaction, all existing security held by the debenture holders will be released and discharged.

Sopica Special Opportunities Fund Limited (SSOFL), an insider shareholder of the company, is a debenture holder and is expected to acquire common shares under the conversion transaction.

Accordingly, SSOFL’s participation constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Securityholders in special transactions.

VEXTF Price Action

Vext's shares traded 9.0000% higher at $0.218 per share at the time of writing on Thursday morning.

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