True Leaf Brands Inc (CSE:MJ) (OTCMKTS:TRLFF), the cannabis for pets group, announced Tuesday a waiver to its funding agreement with New York fund manager The Lind Partners, announced earlier this year.
In February, the British Columbia-based firm unveiled the $4.5 million agreement, which was in the form of convertible security with a maturity date of 24 months and a fixed conversion price per share of $0.40.
Today's announced amendments mean there is now a six-month repayment deferral to March 22, 2020.
True Leaf must also issue an additional convertible security with a face value of $540,000 to investor Lind. This is called the deferral convertible security.
And it must issue 2.16 million warrants of True Leaf to The Lind Partners.
True Leaf said that the face value of the deferral convertible security is convertible into True Leaf shares at a conversion price of $0.21 each.
The company is required to repay the principal amount of the deferral convertible security in 18 equal monthly payments beginning six months after closing, except that the repayment amount will be reduced in any month by any amount converted by the investor into the company’s shares.
Each warrant entitles Lind to buy one share at an exercise price of $0.21. The warrants expire 36 months from issue.
A key partner
"We are excited to continue as a key partner of True Leaf by supporting their strategic growth plan," said Phillip Valliere, managing director at The Lind Partners.
"True Leaf's expanded natural pet care product lines and growing retail footprint have positioned the company to be a leader in the global pet care market, and, as an investor, we continue to believe that True Leaf has tremendous commercial growth potential."
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