The Vancouver-based firm said it has entered into a support agreement with holders of its C$35 million principal amount 8% unsecured convertible debt. A proposal was submitted to the official receiver cancelling all of Nabis’s outstanding shares, warrants, stock options and equity claims on the company, which will be extinguished once the proposal is implemented.
In return, Nabis will issue and pay each creditor a pro rata share of 3.7 million new shares and new 5.3% first lien notes amounting to C$23 million, due in 2022.
Nabis and its debt holders will receive releases of certain claims under the Bankruptcy and Insolvency Act of Canada.
Debt holders will vote for the proposal at an upcoming meeting on December 14.
Nabis told shareholders in a statement that the proposal “is in the best interests of the company and its stakeholders.”
Separately, the US-focused cannabis company said it had resolved its legal dispute with former president and COO Mark Krytiuk, who agreed to relinquish his board seat in exchange for receiving outstanding employment entitlements.
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