LVWL.CN), one of North America’s largest hemp extraction companies, today announced that on June 12, 2019, its subsidiary Vitality Natural Health LLC (“VNH”) and Surety Land Development LLC (“Surety”) among others, entered into a termination agreement terminating an amended and restated settlement agreement among VNH and Surety, among others. In connection with the termination agreement, Surety agreed to convert existing VNH indebtedness to Surety into an unsecured convertible note in the principal amount of US$18.5 million. This note is convertible by Surety into Eureka93’s common shares at CAD$9.44 per share (the “Surety Note”). The Surety Note accrues interest at 10% per annum (payable monthly) and has a maturity date of March 31, 2021. The US$18.5 million principal is repayable only at maturity date; however, Eureka93 may prepay the Note at any time in whole or in part.
As part of the transaction, Eureka93 will grant Surety warrants to purchase an aggregate of 2,100,000 common shares of Eureka93 at an exercise price of CAD$11.10 per share, expiring March 31, 2021.
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cseguin@eureka93.com
Media
Sónia Brum
647.338.7381, sbrum@eureka93.com