TORONTO, May 7, 2019 /CNW/ - National Access Cannabis Corp. ("NAC" or the "Company") (TSXV: META), Canada's largest private cannabis retailer, had previously announced on January 7, 2019 that it had received approval from the TSX to distribute $21,150,000 aggregate principal amount of 8.0% convertible secured senior debentures (the "Debentures") as governed by a convertible debenture indenture made as of November 23, 2018, between the Company and TSX Trust Company (the "Debenture Indenture"). In accordance with the Debentures, interest in the amount of $41.78 for each $1,000 of Debentures is due and payable to Debentureholders on May 31, 2019 (the "Current Interest Obligation").
The Company has provided notice to the registered holders of the Debentures that, pursuant to the terms of the Debenture Indenture, the Company has elected to satisfy the entirety of the Current Interest Obligation by the delivery of common shares in the capital of the Company (the "Common Shares"). The Common Shares issued in satisfaction of the Current Interest Obligation shall be issued at a price per Common Share equal to the volume weighted average price for the ten (10) consecutive trading days ending on May 28, 2019.
"This election maximizes the capital available to invest in high return priorities including building on our current network of 25 recreational cannabis stores and making targeted investments to continue driving solid operating performance," said Mark Goliger, CEO of NAC. "Today, we have the largest footprint of retail cannabis stores in Canada and are awaiting the approval of an additional 24 licenses that have already been submitted. This has been a monumental year both for Canadian cannabis and for NAC. We greatly appreciate the ongoing support of our loyal shareholders as we continue to solidify our already-leading position in the market."
In accordance with terms of the Debenture Indenture, the Common Shares shall be payable to the registered holders of Debentures appearing on the registers marked by the Trustee at the close of business on May 24, 2019, being the fifth Business Day prior to the applicable interest payment date. No fractional Common Shares will be issued in satisfaction of the Current Interest Obligation.
The Common Shares have not and will not be registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Act.
About National Access Cannabis Corp.
NAC is Canada's largest recreational cannabis retailer. With 25 retail locations nationwide, NAC is the leader in secure, safe and responsible access to legal recreational cannabis in Canada. Through its Canada-wide network of Meta Cannabis Supply Co.™ and NewLeaf Cannabis™ recreational cannabis retail stores and National Access Cannabis Medical™ cannabis clinics and pharmacy partnerships, NAC enables the public and registered patients to gain knowledgeable access to Canada's network of authorized Licensed Producers of cannabis. NAC is listed on the TSX Venture Exchange under the symbol (TSXV: META).
This news release contains forward looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward looking statements or information. Forward-looking statements and information in this news release includes, but is not limited to, the opening dates for NAC cannabis retail stores and the number of NAC cannabis retail stores expected to open and/or become licensed. Although the Company believes that the expectations and assumptions on which the forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company cannot give any assurance that they will prove to be correct. Since forward looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results and developments may differ materially from those that are currently contemplated by these statements depending on, among other things, risks relating to the ability to obtain or maintain licenses to retail cannabis products; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; and the medical and potential cannabis industry in Canada generally. The Company cautions that the foregoing list of risks and uncertainties is not exhaustive.
The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE National Access Cannabis Corp.
For further information: National Access Cannabis: Mark Goliger, Chief Executive Officer, National Access Cannabis, Tel: 647-689-6382, [email protected]; Investor Relations: Emily Gibbs, LodeRock Advisors Inc., Tel: 416-546-8775, [email protected]; Media Inquiries: Jessica Patriquin, Tel: 416-640-5525 x 230, Cell: 416-995-8496, [email protected]