- Silo Wellness (SILO) informs of financing commitment of CAD$5,950,000 in convertible debentures
- It has entered into a subscription agreement with Global Tech Opportunities 14
- Silo intends to use the proceeds to finance the manufacturing of the Marley One brand for an existing purchase order and general working capital purposes
- Silo has agreed to pay the subscriber a commitment fee of $300,000
- Silo Wellness is a growth-oriented holding company focused on functional mushroom and psychedelic opportunities
- Silo Wellness Inc. (SILO) was trading at C$0.30 at 1:04 pm as of April 12
Silo Wellness Inc. (SILO) has announced CAD$5,950,000 financing arrangement with Alpha Blue Ocean.
Silo intends to use the proceeds to finance the manufacturing of the Marley One brand for an existing purchase order and general working capital purposes. The subscriber is an investment fund managed by Alpha Blue Ocean.
“As a publicly-traded psychedelics company offering psychedelics to guests in Jamaica and functional mushroom products across the U.S. and U.K., we welcome this transaction and the opportunity to work with Alpha Blue Ocean,” commented Douglas K. Gordon, Silo Wellness’s CEO.
“This new capital will allow us to strengthen our balance sheet and focus on shareholder value creation through the expansion of our business model and, most directly, the growth of our Marley One line of functional mushroom products,” added Gordon.
“With a strong brand such as Marley One, as well as access to capital through our facility, Silo can become an important global player in the functional mushroom market which saw a market value greater than USD 25 billion in 2020,” said Amine Nedjai, ABO’s CEO.
The subscription agreement provides a commitment to fund the corporation up to $5,950,000 by subscribing to $7,300,000 aggregate principal amount of convertible debentures, inclusive of the commitment fee.
It will also include 20 tranches, each in the aggregate principal amount of $350,000, convertible upon notice at the lower of the closing price of the common shares on the CSE at the time of delivery of the relevant conversion notice to the corporation.
The company will be required to pay the subscriber a make-whole amount to compensate the subscriber for the difference between the actual conversion price and the theoretical conversion price.
Silo has agreed to pay the subscriber a commitment fee of $300,000. $150,000 will be added to the principal amount of the debentures issued in connection with each of the first two tranches.
Additionally, before the second tranche is funded, a number of free trading shares must be lent to the subscriber by certain shareholders pursuant to share lending agreements that have already been executed by the relevant parties, and the company shall have completed a twenty to one consolidation of the common shares.
Upon the occurrence of certain events of default or a change of control, as set forth in the subscription agreement, the convertible debentures may, at the discretion of the subscriber, be redeemed in cash prior to the maturity at price equal to 105 per cent of the principal amount then outstanding.
The subscription agreement also contains provisions preventing the company from issuing convertible debentures if the issuance of such convertible debentures would result in the subscriber holding beneficial ownership or control of greater than 19.9 per cent of the common shares.
Silo Wellness is a growth-oriented holding company focused on functional mushroom and psychedelic opportunities that benefit from a unified ecosystem and exceptional leadership.
Founded in 2018 and headquartered in Toronto, Silo Wellness has operations in Jamaica and Oregon.
ABO was created in 2017 by Pierre Vannineuse, Hugo Pingray and Amaury Mamou-Mani. ABO is a young and dynamic investment fund manager with the mission of revolutionizing the financial industry by offering innovative financing solutions.
Silo Wellness Inc. (SILO) was trading at C$0.30 at 1:04 pm as of April 12.
