Cansortium Inc. (CSE:TIUM.U) (OTCQB: CNTMF) (“Cansortium” or the “Company”), a vertically-integrated cannabis company operating under the Fluent™ brand, today announced that it has exercised its right under the convertible promissory notes (the “Notes”) initially issued in the aggregate principal amount of US$10 million in February 2019 (as amended in August 2020, February 2021 and May 2021) to force the conversion of the Notes into common shares of the Company. US$5 million of the Notes were previously redeemed with cash on May 5, 2021. As a result, all obligations under the Notes have been satisfied and are thus canceled.
Under the terms of the Notes, the Company had the right to force the conversion of all amounts outstanding thereunder upon the Company share price closing at $0.96 or greater for thirty consecutive trading days with an average trading volume over that period of at least 100,000 shares. As a result of the conversion, 8,426,574 common shares have been issued. Per the terms of the Notes, the remaining aggregate principal amount of each Note was converted into common shares at $0.60 and the accrued but unpaid interest under each Note was converted into common shares at $1.01, representing the closing price of the common shares on the trading day prior to the conversion.
Cansortium CEO Robert Beasley commented: “We have worked diligently over the past several months to simplify our capital structure and materially improve our balance sheet. With this redemption, we have eliminated all convertible notes from our cap table. We would like to thank our convertible noteholders for their support of the Company over these past two years.”
In addition, Cansortium has recently engaged Elevate IR to expand their investor relations program, which will include consulting services for corporate messaging, investor outreach and capital markets advisory. Elevate IR is a strategic financial communications firm with deep experience in creating and deploying effective investor relations strategies for companies that operate across a broad range of industries, including Health & Wellness, Consumer, Technology and Business Services, among others.
