The firm recently launched a new real-world implementation of its StrainSecure platform with Canada’s largest pharmacy chain Shoppers Drug Mart.
The terms of the debenture include a maturity date of three years from the date of issue, with the principal amount payable on the maturity date unless converted earlier.
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Each debenture bears an interest rate of 8.25% per year payable monthly in arrears. The principal amount of each debenture is convertible into units of TruTrace at a price of $0.05 per debenture unit, with each unit consisting of one share and one whole warrant exercisable at $0.05 for a two-year period.
TruTrace has the option to require the debenture holder to convert any or all of the outstanding principal amount and any unpaid interest into debenture units at the conversion price if the daily volume-weighted average share price exceeds $0.20 over a consecutive ten-day period.
Repayment by TruTrace is secured by a charge over all of the company’s assets. Subscribers to the financing have entered into an agency and inter-lender agreement with TruTrace under which the subscribers have appointed an agent to act on behalf of them to enforce the subordinated security interest, according to a statement from TruTrace.
The Vancouver-based company also said that the holder of a debenture issued in October 2019 has converted an outstanding debenture with the amount owing of $214,538 into 4,273,160 shares of the company at a revised conversion price of $0.05 per share.
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