The Cannabist Company Announces Partial Redemption of Senior Secured Notes

NEW YORK – The Cannabist Company Holdings Inc  a major cultivator, manufacturer, and retailer of cannabis products in the U.S., has announced its intention to partially redeem its outstanding 13% senior secured notes due by May 14, 2024.

The Company disclosed its plans to redeem $25 million of the total $38.2 million principal amount of these notes, a move set for execution on October 23, 2023. This partial redemption follows the firm’s recent successful closure of a Private Placement that raised about $25 million in late September.

For note holders, the redemption implies that a segment of their 13% notes, specifically in units of $1,000, will be redeemed on the stated Redemption Date. This process will unfold in alignment with the terms set by the trust indenture formed with the Odyssey Trust Company in May 2020.

On the Redemption Date, holders of these redeemed notes are poised to receive a payment of $1,010 for every $1,000 principal amount of the redeemed note, inclusive of all accrued but unpaid interest up to that date. Payments will be processed promptly upon the presentation and surrender of the redeemed notes in line with the guidance provided in the notice.

Additionally, note holders who offer up their 13% notes for redemption but face only partial redemption will be issued a new 13% note representing the non-redeemed principal value at no additional cost. Interest accumulation on the redeemed notes is scheduled to conclude after the Redemption Date.

The Cannabist Company will dispense the redemption price in cash, utilizing its available funds. The move for partial redemption seems strategically timed following the company’s announcement regarding its primary use of the recent Private Placement’s proceeds to diminish its existing debt.