The Cannabist Company Announces Partial Redemption of 13% Senior Secured Notes Due May 2024
09 Oktober 2023 - 2:48PM
Business Wire
The Cannabist Company Holdings Inc. (NEO: CBST) (OTCQX: CBSTF)
(FSE: 3LP) (“The Cannabist Company” or the “Company”), one of the
largest and most experienced cultivators, manufacturers and
retailers of cannabis products in the U.S., announced today that it
has delivered a notice of partial redemption (the “Notice”) to the
holders of the Company’s outstanding 13% senior secured notes due
May 14, 2024 (the “13% Notes”). The Notice provides that the
Company will, on October 23, 2023 (the “Redemption Date”), redeem
US$25 million of the total US$38.2 million principal amount of the
Notes (the “Redeemed Notes”) currently outstanding (the “Partial
Redemption”).
On the Redemption Date, Holders of Notes will have a portion of
their 13% Notes, in denominations of $1,000, redeemed effective as
of the Redemption Date on a pro rata basis in accordance with the
terms of the trust indenture between the Company and Odyssey Trust
Company (the “Trustee”) dated May 14, 2020, as amended and
supplemented (the “Indenture”).
Holders of Redeemed Notes will be entitled to receive payment of
$1,010 for each $1,000 principal amount of Redeemed Notes (the
“Redemption Price”) plus all accrued by unpaid interest up to but
excluding the Redemption Date. The Redemption Price will be due and
payable on the Redemption Date upon presentation and surrender of
the Redeemed Notes in accordance with the instructions in the
Notice. All Holders that surrender 13% Notes to the Company for
redemption that are redeemed only in part, will receive a new 13%
Note for the unredeemed part of the principal amount without
charge. All interest on the Redeemed Notes shall cease from and
after the Redemption Date.
The Cannabist Company will satisfy its obligation to pay to the
holders of Redeemed Notes the Redemption Price in cash from funds
on hand. The Partial Redemption follows on the Company’s September
21 closing of a Private Placement for aggregate gross proceeds of
approximately US$25 million, for which the primary intended use of
proceeds was stated to be the reduction of outstanding
indebtedness.
Beneficial holders of Notes should contact their investment
dealer if they have any questions about the Partial Redemption.
Holders of Notes may also refer to the Indenture for a full
description of the redemption process, a copy of which is available
under The Cannabist Company’s SEDAR profile at www.sedar.com.
Subsequent to this Partial Redemption, the Company will have
reduced overall interest expense and realized an annualized
reduction in interest expense of $3.25 million. In connection with
issuing the Notice and completing the Partial Redemption, the
Company does not expect to complete the previously announced
exchange of certain 13% Notes for a later series of note to ensure
pro rata and equal treatment of all holders of 13% Notes.
About The Cannabist Company (f/k/a Columbia Care)
The Cannabist Company, formerly known as Columbia Care, is one
of the largest and most experienced cultivators, manufacturers and
providers of cannabis products and related services, with licenses
in 16 U.S. jurisdictions. The Company operates 125 facilities
including 94 dispensaries and 31 cultivation and manufacturing
facilities, including those under development. Columbia Care, now
The Cannabist Company, is one of the original multi-state providers
of cannabis in the U.S. and now delivers industry-leading products
and services to both the medical and adult-use markets. In 2021,
the Company launched Cannabist, its retail brand, creating a
national dispensary network that leverages proprietary technology
platforms. The company offers products spanning flower, edibles,
oils and tablets, and manufactures popular brands including Seed
& Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber.
For more information, please visit www.cannabistcompany.com.
Caution Concerning Forward Looking Statements
This press release contains certain statements that constitute
“forward-looking information” or “forward-looking statements”
within the meaning of applicable securities laws and reflect the
Company’s current expectations regarding future events.
Forward-looking statements or information contained in this release
include, but are not limited to, the completion of the Partial
Redemption on the Redemption Date. These forward-looking statements
or information, which although considered reasonable by the
Company, may prove to be incorrect and are subject to known and
unknown risks and uncertainties that may cause actual results,
performance or achievements of the Company to be materially
different from those expressed or implied by any forward-looking
information. In addition, securityholders should review the risk
factors discussed under “Risk Factors” in Columbia Care’s Form 10-K
for the year ended December 31, 2022, as, filed with Canadian and
U.S. securities regulatory authorities and described from time to
time in subsequent documents filed with applicable securities
regulatory authorities.
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version on businesswire.com: https://www.businesswire.com/news/home/20231009460268/en/
Investor Contact
Lee Ann Evans SVP, Capital Markets
investor@cannabistcompany.com
Media Contact
Lindsay Wilson SVP, Communications
media@cannabistcompany.com
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