California Cannabis Co. Pays Off Debt, Here's What's Next

Author: Jelena Martinovic | October 06, 2023 09:23am

California's Lowell Farms Inc. (CSE:LOWL) (OTCQX:LOWLF) said on Friday that it has repurchased all of the $22,157,417 aggregate principal amount of outstanding senior secured convertible debentures of its subsidiary, Indus Holding Company, as well as related warrants to purchase 106,274,830 subordinate voting shares of the company and 43,248,450 common shares of Indus. Lowell Farms is a vertically integrated cannabis company.

The Details

Each holder received as the purchase price, therefore, such holder's pro rata share, based on the proportion of the outstanding debentures held by such holder, of:

Membership interests in LF Brandco LLC, an entity formed to hold the company's intellectual property relating to its "Lowell Smokes" and "Lowell Herb Co." brands, including trademarks, logos and additional identifying marks, domain names and social media accounts; and
6,849,572 subordinate voting shares, representing approximately 36% of the company's consolidated, undiluted equity interests.

As of the closing of the offer, the voting agreement of the company, pursuant to which the former holders of the debentures were entitled to nominate three out of seven members of the company's board of directors and consent to the nomination of a fourth, and certain contractual operating covenants in favor of the former Debenture holders, has been terminated.