Braingrid Limited (CSE:BGRD) (OTCMKTS:BGRDF) announced it has closed the first tranche of a C$5.1 million financing from Alpha Blue Ocean Inc.
The first tranche of $850,000 debentures closed Tuesday, Braingrid said in a statement.
The funds are courtesy of the European High Growth Opportunities Securitization Fund, which is run by London-based money manager Alpha Blue Ocean Inc.
Toronto-based Braingrid provides grow analytics by capturing real-time data using its technology platform to increase revenues, reduce costs, risks and improve yield for cannabis-licensed producers.
Under the terms of the agreement, the European fund will subscribe for up to $5.1 million of senior unsecured convertible debentures in up to 18 separate closings during a three-year period. The debentures will be issued with accompanying warrants, which are exercisable at a closing price to be determined.
The debentures will not generate interest and have a maturity date of 12 months following the date of issue.
Subject to regulatory compliance, the debentures will be automatically converted into shares in of Braingrid at the aggregate amount of the debentures being converted divided by the applicable conversion price based on the market price.
Contact Angela at firstname.lastname@example.org
Follow her on Twitter @AHarmantas