Source: Simply Better Brands
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  • Simply Better Brands (SBBC) restructures financing to eliminate security over the company’s assets and reduce dilution
  • Each convertible debenture will mature 24 months from closing the offering
  • Interest will also be 10 per cent per annum, calculated annually
  • The convertible debentures will be convertible at the holder’s election into common shares at $0.39
  • Net proceeds will be for short-term debt reduction and general working capital to support sales growth across its portfolio of brands
  • Simply Better Brands (SBBC) is up 4.71 per cent, trading at C$0.44 at 1:54 pm EST

Simply Better Brands (SBBC) has restructured its convertible debenture offering that does not require a general security agreement.

It also reduces the total potential share dilution from the previous offering.

While the company has amended the terms of the non-brokered private placement of convertible debentures, which was announced on July 21, it should be noted that each convertible debenture will now mature 24 months from closing the offering.

Interest will also be 10 per cent per annum, calculated annually.

Interest will be payable quarterly until the maturity date. The interest can be converted into common shares.

The convertible debentures will be convertible at the holder’s election into common shares at $0.39.

Simply Better Brands has the option to force the conversion of the convertible debentures in the event the volume weighted average price of the common shares on the TSXV is greater than $1.00 for any five consecutive trading days.

Each convertible debenture holder will receive a one-half warrant for each common share exercisable at $0.59.

The company is looking to use the net proceeds for short-term debt reduction and general working capital to support sales growth across its portfolio of brands.

The company also noted that it is reducing the size of the convertible debenture financing raise from up to $9,100,000 to up to $2,000,000.

This update would issue up to 7.7 million new shares compared to the previous offering, which could have issued up to 23.3 million new shares.

The amended convertible debenture offering will potentially reduce the new shares to 15.6 million.

As of yesterday, the current outstanding shares are 35,691,825. This includes shares from the recently closed common share private placement announced on July 26. 

“The revised plan fuels sustainable growth while not further encumbering our balance sheet and minimizing potential dilution for our shareholders,” says Kathy Casey, Simply Better Brands Corp.

“Our operational fundamentals are strong as we plan to more than triple our revenue this year, increase our gross margin to 63 to 65 per cent and achieve positive adjusted EBIDTA,” added Casey.

Simply Better Brands Corp. leads an international omnichannel platform with diversified assets in the emerging plant-based and holistic wellness consumer product categories.

Simply Better Brands (SBBC) is up 4.71 per cent, trading at C$0.44 at 1:54 pm EST.


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