Decibel Cannabis Company Inc. (TSXV:DB) (OTCQB:DBCCF), a premium cannabis producer, announced the cash repayment of its 9.5% convertible debentures, which had a maturity date of May 10, 2022. The $12 million cash repayment represents a full payout of the convertible debentures, which were subject to a conversion rate of approximately 2,222 common shares for each $1,000 of principal amount of convertible debentures, equal to a conversion price of $0.45 per common share.
The company met the pre-disbursement conditions required to draw-down $12 million under its credit facility with ConnectFirst Credit Union and concurrently made the cash repayment of the convertible debentures. The company's $12 million draw-down from its credit facility is subject to a 60-month repayment term at a fixed rate of 4.75% per annum, amortized over 144 months.
