Merida Merger Corp. I announced a private placement of unsecured convertible senior notes due 2025 for gross proceeds of $30,000,000 on January 11, 2022. The transaction will include participation from new investor Cohanzick Management, LLC.

The notes will bear interest at a rate of 8% per annum, paid in cash semi-annually in arrears on July 31 and January 31 of every year. The notes will be convertible at the option of the holders at any time before maturity at an initial conversion share price of $12.50 (80 shares of the company common stock per $1,000 principal amount of notes or accrued and unpaid interest, if any, thereon). The company has the option after one year to redeem all or a portion of the notes for cash equal to the principal or force the conversion of the notes after two years based on pre-agreed share price thresholds.

The company has agreed to pay the investor a 1.25% commitment fee, which fee will be paid through the transfer of shares of Merida common stock held by Merida's sponsor, and transfer an aggregate of 300,000 private warrants held by the sponsor to the investors.