Delta 9 Cannabis Inc. (OTCQX:DLTNF) (TSX:DN) has closed a transaction with Uncle Sam’s Cannabis Ltd. and Wissam El Annan to acquire all or substantially all of Uncle Sam’s assets relating to the operation of seventeen retail cannabis stores in Alberta. The company will also be closing it’s previously announced $32 million in credit facilities from Connect First Credit Union Ltd.
To provide additional funding, the company will also complete a private placement of $10 million in principal amount of senior secured second-lien convertible debentures by Sundial Growers Inc. (NASDAQ:SNDL). The subscription price of $9.6 million represents an original discount of 4%. The Sundial debenture matures on March 30, 2025 and bears an interest rate of 10% per annum, subject to increase on the occurrence of certain events as set forth in the Sundial debenture, payable monthly.
