Cannabis Opportunity: Xebra Brands Announces $1M Non-Brokered Private Placement Deal

Cannabis company Xebra Brands Ltd. XBRA XBRAF 9YC announced on Monday that it plans to complete a non-brokered private placement in the aggregate amount of up to CA$1 million ($733,898) according to a binding commitment from a strategic investor.

The company intends to issue up to 12 million units at CA$0.05 per unit for gross proceeds of up to CA$600,000 and a concurrent placement of up to a principal amount of CA$400,000 of unsecured convertible debenture units.

The Details

Under the commitment, the strategic investor will have the right to appoint one director to become a member of the company's board of directors and will also be entitled to appoint a person as a board observer to board meetings.

Each unit will comprise one common share of the company and one common share purchase warrant. Each unit warrant will entitle the holder thereof to acquire one common stake at CA$0.10 per unit warrant share at any time for a period of eighteen months following the closing of the unit offering.

Each convertible debenture unit issued under the CD offering will consist of:

• CA$1,000 principal amount of unsecured convertible debenture of the company; and
• 20,000 common share purchase warrants.

Each CD Warrant shall entitle the holder to acquire one common share at an exercise price of CA$0.10 per CD warrant share at any time for a period of eighteen months following the closing of the CD offering.

The debentures will mature on the date that is 36 months from the date of issuance and shall bear interest at a rate of 8% per annum, payable semi-annually in arrears, and will not be redeemable by the company.

The debentures will be convertible into common shares at the option of the holder at any time prior to the maturity date at a conversion price equal to $0.05 per debenture share.

What's Next

The closing of the unit offering will be on or about October 6, 2023, or such other date or dates that Xebra may determine.

XBRAF Price Action

Xebra's shares traded 14.3302% lower at $0.0275 per share at the time of writing on Tuesday.

Related News

• Xebra Brands To Secure $600K Via Private Placement, Announces Share Consolidation
• Xebra Signs Cannabis Cultivation Agreement In Mexico With Chapingo University
• Xebra Brands Expands Its Cannabis Infused Beverage Line With Launch Of OG Slim With THC And CBN
• Xebra Brands Teams Up With Vertosa For Mexican Expansion

Photo: Courtesy of NikolayFrolochkin and ganjaspliffstoreuk by Pixabay