CLS Holdings USA Inc., (OTCMKTS:CLSH) operating as Cannabis Life Sciences, has announced on September 15, 2022, that following receipt of the requisite approval of debenture holders and the Canadian Securities Exchange, it has amended the terms of its outstanding US$13,219,150 principal amount unsecured convertible debentures issued December 12, 2018.
On Thursday, CLSH stock ended flat at $0.0700 with 200 shares, compared to its average volume 27.59K shares. The stock moved within a range of $0.0700 – 0.0700 after opening trade at $0.0700.
CLS Holdings USA, Inc. Announces Amendments to Convertible Debentures and Underlying Warrants
Some of the terms are – permitting the mandatory conversion, in the company’s discretion, of $7,931,490 in principal amount of the December Debentures plus $132,192 in accrued interest on the December Debentures into units at the reduced conversion price of $0.07125 per unit and decreasing the conversion price of the remaining December Debentures (following the mandatory conversion) to $0.10 per unit.
It was also announced that depending upon regulatory approvals; the company intends to implement a 1-for-4 reverse stock split, effective from the opening of business on September 21, 2022. Due to the reverse stock split, every 4 shares of issued and outstanding common stock will be exchanged for 1 share of common stock, with any fractional shares being rounded up to the next higher whole share.
Once the reverse stock split is effective, the company will have approximately 32,052,021 shares of common stock issued and outstanding. The authorized common stock will also be reduced as a result of the reverse stock split from 750,000,000 shares to 187,500,000 shares.
CLSH stock is trading below the 20-Day and 50-Day Moving averages of $0.02682 and $0.0710 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0825.