Craft cannabis company GRIN GRUSF closes $2.0 million convertible debentures

Grown Rogue International Inc. GRIN GRUSF, a craft cannabis company in Oregon and Michigan, has closed a private placement of convertible debentures with an aggregate principal amount of $2.0 million. The debentures have an interest of 9% per year, paid quarterly, and mature 36 months from the date of issue. The purpose of the funds is to speed up expansion efforts and for general corporate purposes.

Convertible debentures are convertible into common shares of the company at a conversion price of CA $0.20 per common share. The company issued an aggregate of 6.7 million warrants, that represent 50% of the purchasers' convertible debenture investment, upon closing. The warrants are valid for a period of three years from the issuance into common shares at an exercise price of CA $0.25 per share. The company can accelerate the warrants if the closing share price of the common shares on the Canadian Securities Exchange is higher than CA $0.40 or higher for a period of 10 consecutive trading days.

The bonds and warrants issued pursuant to the private placement are subject to a statutory hold period of four months and one day from the closing date.

Insiders of the company invested $50,000 in the convertible debentures. The company relies on exemptions from the valuation and minority shareholder approval requirements under Multilateral Instrument 61 - 101 protection of minority security holders in special transactions contained in section 5.5 b and 5.7 a of MI 61 - 101 in respect of such insider participation.

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