Cannara Biotech Inc. LOVFF LOVE (FRA:8CB) held its annual shareholder meeting on January 25, 2023. At the meeting, an ordinary resolution of disinterested shareholders was passed approving the creation of a new control person arising from the conversion of convertible debentures held by Olymbec Investments Inc. into common shares of the company.
Convertible debentures in the aggregate principal amount of $5 million were issued to Olymbec on July 12, 2021, bearing interest at a rate of 4% per annum, compounded semi-annually and convertible in whole, along with any accrued interest, into common shares of the company at a price of $0.18 per common share.
On February 7, 2023, the company received a notice of conversion from Olymbec to convert $5.32 million into 29.55 million common shares of the company. On February 9, 2023, the company issued shares from treasury in relation to the conversion, subject to TSX-V approval, thereby reducing overall long-term debt obligations of the Company by $5.32 million.
Following completion of the conversion, Olymbec now has direct ownership and control of 193.2 million common shares of the company representing 21.30% of the issued and outstanding common shares.
Amendment To The Company’s Option Plan
An ordinary resolution was passed during the annual shareholder meeting approving an amendment to the company’s option plan and the adoption and implementation of the restricted share unit plan, subject to and subsequently received acceptance by the TSX-V approval. On February 9, 2023, the company granted an aggregate of 7.89 million RSU’s to certain employees, subject to certain vesting conditions and obtaining TSX-V approval of the RSU Plan.
In addition, the company also received both TSXV and shareholder approval to proceed with the consolidation of all issued and outstanding common shares of the company on a ten pre-consolidation common shares to one post-consolidation common shares basis. The share consolidation is expected to take effect on February 13, 2023, resulting in approximately 90.7 million common shares issued and outstanding, along with 5.24 million shares reserved for issuance and the exercise of existing stock options and RSU’s, subject to adjustment for fractional shares.
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