Aura Health Inc. is very pleased to announce that it has closed a non-brokered private placement offering (the “Offering”) on October 26th, 2018 (“Closing Date”) of unsecured convertible debentures bearing interest at a rate of 10% per annum, payable quarterly in arrears (each a “Debenture”, and together the “Debentures”), for gross proceeds of CAD$400,000. The proceeds of the Offering will be used by the Company for general working capital requirements and general corporate purposes.
Each Debenture is convertible at the conversion price of $0.365 (the “Conversion Price”) into units (the “Units”) consisting of one common share in the capital of the Company (each a “Common Share”, and together the “Common Shares”) and one-half of one common share purchase warrant (the “Warrants”) exercisable at the conversion price of $0.50 per Common Share for a period of 24 months from the date of issuance.
The Debentures are exercisable until October 26, 2020, or until such time that the Common Shares of the Company trade on the Canadian Stock Exchange for a period of 20 consecutive trading days at a price of $0.60, upon which the Common Shares will automatically convert into Units at the Conversion Price.
The Debentures and any securities which may subsequently be issued in relation thereto are subject to a four month and one day hold period.
Daniel Cohen, Chief Executive Officer of the Company participated in the Offering, subscribing to a $200,000 Debenture. Such participation is considered a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The related party transaction is exempt from minority approval, information circular, and formal valuation requirements pursuant to the exemptions contained in Sections 5.7(a) and 5.5(a) of MI 61-101, as neither the fair market value of the gross securities issued under the Offering nor the consideration paid by Daniel Cohen exceed 25% of the Company’s market capitalization.—GLOBE NEWSWIRE
About Aura Health Inc.
Aura is building an international network of vertically-integrated cannabis assets. The company has LOIs in place to acquire the majority of two Israeli assets: HolyCanna, a cultivation and nursery license holder, and CannabiSendak, the builder of a network of high-profile dispensaries. Aura also owns a 30% interest in four medical marijuana clinics in the U.S. Sun Belt, with an option to increase its interest in three of the clinics to 51%.
