CannAmerica Brands Corp. (CNSX:CANA) announced a non-brokered private placement of unsecured convertible debentures for gross proceeds of CAD 663,350 on September 4, 2019. The transaction included participation from SBI Investments LLC; a fund managed by Sea Otter Global Ventures LLC. Interest on the debentures will accrue at a rate of 12% per annum. The company is required to repay the debentures in 12 equal monthly installments of 1/12 of the principal amount plus accrued Interest beginning four months plus one day after the date of issuance of the debentures. The company may provide 10 business days’ written notice to SBI of its intention to repay the debentures through the issuance of such number of common shares equal to the repayment amount divided by 85% of the volume-weighted average price of the shares for the 5 consecutive trading days before each monthly payment date, but in any event the repayment shares may not be issued at a price per share less than CAD 0.10. The company will also issue warrants equal to 50% of the principal amount of the applicable tranche divided by the closing price of the common shares on the trading day immediately prior to the closing date of the applicable tranche. Each warrant will be exercisable for 36 months from the date of issuance to purchase one common share at a price equal to 125% of the volume-weighted average price of the shares for the 20 consecutive trading days prior to the date of issuance. All securities issued in connection with the private placement will be subject to a four-month hold period from the date of closing of the applicable tranche of the private placement under applicable Canadian securities laws. No finder’s fees, broker’s fees or commissions will be paid in connection with the transaction. The transaction is subject to applicable corporate and regulatory approval. The company expects to receive CAD 2,000,000 in the transaction.