Tinley's Secures $3.5M Strategic Investment By Blaze Life Through Convertible Note, New Director Nominees Revealed
The Tinley Beverage Company Inc. OTCQX:TNYBF (CSE:TNY) has issued an up to
Blaze Life Holdings was founded in 2017 by two cannabis visionaries:
The company and BLH have also agreed to enter into a management services agreement pursuant to which BLH will provide certain management services to Tinley's, Algonquin and Tinley's other US-based subsidiaries. Such services are expected to include operations management and engineering support, and collaboration on recruitment, supply chain synergies, best practices, and business systems.
Annual and Special Meeting of Shareholders
In connection with the issuance of the BLH Note, the company has agreed to recommend two director nominees of BLH for election to the board of directors of the company at the next annual and special meeting of shareholders of the company. The BLH nominees are expected to include
The date of the Meeting is expected to be on or about the first week in
The BLH Note
The BLH note is a grid note that will bear interest at a rate of 12% per annum and has a term of five years from the date of issuance. All indebtedness under the BLH note, including all principal amounts advanced under the note from time to time and accrued and unpaid interest, shall be convertible into units of the company at the option of BLH at a price of CA$0.105 per unit. Each unit shall consist of one common share in the capital of the company and one-half of one common share purchase warrant, with each warrant exercisable for a period of two years from the date of issuance of such warrant at an exercise price equal to the conversion price.
The initial advance under the BLH note is
The BLH note provides for the automatic conversion of: 33.33% of the indebtedness under the BLH note if the closing price of the common shares on the facilities of the Canadian Securities Exchange exceeds
As a result of the closing of the BLH note, Yanow is entitled to a receive a
The Gillis Note
The Gillis note will bear interest at a rate of 12% per annum and has a term of one year from the date of issuance. All indebtedness under the Gillis note, including all principal amounts advanced under the note from time to time and accrued and unpaid interest, shall be convertible into units at the option of Gillis at the conversion price. Each unit shall consist of one common share in the capital of the company and one-half of one warrant, with each whole warrant exercisable for a period of two years from the date of issuance of such warrant at an exercise price equal to the conversion price.
In the event of a liquidity event, all of the then remaining indebtedness will automatically convert into units at a 25% discount to the deemed price per common share paid in connection with the liquidity event, or, if such discount is not permitted by the CSE, then the maximum applicable discount permitted by the CSE.
The obligations under the Gillis note are secured against the assets of the company and its US subsidiaries, which security is second in priority behind the security of BLH noted above.
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