EMPOWER CLINICS INC. (OTCQB:EPWCF) (CSE:CBDT)(Frankfurt:8EC) has closed a non-brokered private placement of unsecured convertible debenture units at a price of $1,000 per unit for aggregate gross proceeds of $2.1 million.
Each unit consisted of one 6.0% senior unsecured convertible debenture of the company having a principal amount of $1,000 and 5,000 common share purchase warrants, each of which is exercisable into one common share in the capital of the company at a price of $0.30 per share until March 25, 2024. The debentures will bear interest at the rate of 6.0% per annum and mature on March 25, 2024. The principal amount of each debenture shall be convertible, for no additional consideration, into shares at the option of the holder at any time prior to the maturity date at a conversion price of $0.20 per share, subject to customary adjustments.
"Our company, our path and the healthcare foundation we are building, is in great shape." stated Steven McAuley CEO and chair of the board of Empower. "We have evolved through these changing times, and we embrace our change. We embark, with legacy assets departed, and an abundance of opportunities in our journey ahead."
The company intends to use the net proceeds raised under the financing to advance its growth plans, and for working capital purposes and general administrative expenses.
In connection with the financing, the company paid cash fees of $197,000 and issued a finder 210,000 shares and 1,890,000 warrants, each of which is exercisable into one share at a price of $0.30 per share until March 25, 2024.
All securities issued pursuant to the financing are subject to a hold period of four months and one day under applicable Canadian securities laws.
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