CANNARA BIOTECH INC. ANNOUNCES RESULTS OF ANNUAL SHAREHOLDER MEETING AND CONVERSION INTO EQUITY OF A $5M CONVERTIBLE DEBENTURE AT $0.18 CENT PER COMMON SHARE
Cannara Biotech announced the results of its annual shareholder meeting held on January 25, 2023. A significant resolution was passed to convert $5,317,645 of convertible debentures held by Olymbec Investments into 29,554,139 common shares, increasing Olymbec's ownership to 21.30%. The company also received approval for a share consolidation on a 10:1 basis, reducing shares from 907 million to approximately 90.7 million. This strategic move aims to improve capital structure and attract new institutional investors. The company reported strong revenue growth in January, driven by high-quality cannabis products.
- Elimination of $5.3 million in debt obligations improves working capital.
- Increased shareholder control may attract institutional investors.
- Record cannabis sales in January indicate strong market demand.
- None.
At the Meeting, an ordinary resolution of disinterested shareholders was passed approving the creation of a new control person arising from the conversion of convertible debentures (the "Convertible Debentures") held by
Convertible Debentures in the aggregate principal amount of
On
Prior to the conversion, Olymbec held 163,650,184 common shares of the Company, representing
An ordinary resolution was also passed during the annual shareholder meeting approving an amendment to the Company's Option Plan and the adoption and implementation of the Restricted Share Unit ("RSU") Plan, subject to and subsequently received acceptance by the TSX-V approval. On
In addition, the Company also received both TSXV and Shareholder approval to proceed with the consolidation of all issued and outstanding common shares of the Company on a ten (10) pre-consolidation common shares to one (1) post-consolidation common shares basis. As of today, the Company's authorized share capital is an unlimited number of common shares without par value, of which 907,035,460 shares are issued and outstanding, with a further 52,363,728 shares reserved for issuance upon the exercise of existing stock options and RSU's. The share consolidation is expected to take effect on
"As
This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. A copy of the related early warning report is being filed with the applicable securities commissions and will be made available under the Company's profile on SEDAR (www.sedar.com) Cannara's head office is located at
Neither the
This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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FAQ
What was the key decision made at Cannara Biotech's annual shareholder meeting on January 25, 2023?
What impact does the convertible debenture conversion have on Olymbec's share ownership?
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