The Cannabist Company Attacks Debt With Repurchasing Agreement To Reduce Leverage By Up To $25M

The Cannabist Company Holdings Inc. (NEO: CBST) (OTCQX:CBSTF) (FSE: 3LP) entered into a binding agreement with certain offshore institutional investors to effect a previously announced repurchase of up to $25 million of the principal amount of the company's 6.0% senior secured convertible notes due June 2025.

"We are pleased to have reached agreement on the previously announced transaction to reduce leverage and decrease interest expense, maintaining momentum for our balance sheet improvement plan," David Hart, Cannabist CEO stated. "We are grateful for the constructive relationship with our investors that enabled this transaction to come to fruition and look forward to delivering on additional initiatives in the months ahead.

ATB Capital Markets acted as the exclusive financial advisor to the company and to the company's special committee.

In connection with the repurchase, the company obtained waivers from holders of, in the aggregate, $34.5 million principal amount of 2025 convertible notes confirming that they did not object to the company completing the repurchase and confirming that they had no intention of participating in a repurchase on similar terms.

Should the holders of the balance of the 2025 convertible notes (representing an aggregate amount of $5 million) participate in a similar repurchase of their 2025 convertible notes, the company expects that approximately $3.57 million principal amount of 2025 convertible notes could be repurchased, with the remaining balance being potentially transferred for new notes.

Price Action 

The Cannabist shares closed Monday market session 2.14% lower at $0.0111 per share. 

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