TransCanna Holdings Inc. announced entered into a definitive loan agreement with Pelorus Equity Group for a secured loan of up to $15,808,000(CAD 20,260,481) for a term of 48 months on July 29, 2022. The Loan accrues interest at a rate of 14% per annum, provided that after 18 months, given that certain requirements are met, the interest rate will be reduced to 12% per annum. Upon an event of default, the interest rate interest increases to 19% per annum. In connection with the Loan, the company issued, to an affiliate of the Lender, warrants to purchase up to 51,208,682 common shares of the company. Each Loan Warrant entitles the Lender to purchase a common share at a price of CAD0.12 ,representing the closing price of the company's common shares on the Canadian Securities Exchange on July 29, 2022, for a period of five years. The Loan Warrants and any Common Shares issuable upon exercise thereof are subject to a hold period of four months and one day. The Company also announce that it will enter into an issuance agreement with Global Tech Opportunities 2 an investment fund managed by ABO for CAD9,500,00 by subscribing for CAD10,000,000 aggregate principal amount of convertible debentures to be issued in 38 tranches, from time to time, during the 48 month period.
On same date, the company announced its first tranche and issued CAD780,000 aggregate principal amount of convertible debentures for gross proceeds of CAD741,000 made a one-time grant to the of 13,194,414 common share purchase warrants of the company having an exercise price of CAD0.136 per share, for a period of five years and issued the commitment fee debentures, in payment of a commitment fee of CAD500,000.