The company has formed wholesale partnerships with two retailers, totaling five dispensary locations in the Reno and Laughlin region of Nevada, from which the retailers will purchase Liht’s entire supply of premium, triple certified organic flower.
“This is a tremendous achievement for Liht and we look forward to continue supplying the Nevada market with our premium flower in advance of Liht’s concentrate product roll-out, expected to begin July 2019. Securing shelf space for our organic products reaffirms Liht’s commitment to redefine ‘premium cannabis’ within the North American market,” Liht Cannabis CEO Rahim Mohamed stated.
Convertible Debentures Offering
Liht Cannabis also announced the closing of the first tranche of a non-brokered private placement of secured convertible debentures for gross proceeds of C$250,000. The debentures mature on May 8, 2021, and bear interest at a rate of 10% per annum, payable on the earlier of the maturity date or upon conversion of the debenture.
The debentures are convertible at the option of the holder into units of the company at a conversion price of C$0.20 per unit. Each unit consists of one common share of the company and one common share purchase warrant of the company, with each warrant entitling the holder thereof to purchase one common share of the company at an exercise price of C$0.35 per share for a period of 18 months.
The company intends to use the net proceeds to finalize the build-out of the first phase of Liht’s Nevada operations, including the purchase of lab equipment, a distribution vehicle, and for general and working capital purposes.
The debentures and the underlying common shares and warrants are subject to a statutory four month and one day hold period until September 9, 2019.