Cannara Announces Proposed Settlement of Convertible Debenture via Share Issuance

Core Viewpoint - Cannara Biotech Inc. intends to settle approximately $6.2 million of indebtedness through the issuance of common shares to Olymbec Investments Inc. as part of a convertible debenture agreement [1][5][6]. Debt Settlement - The company plans to settle $4.7 million in principal and approximately $1.5 million in accrued interest under the Olymbec Convertible Debenture [1][2]. - The original principal amount of the Olymbec Convertible Debenture was $5.7 million, with a prior repayment of $1 million reducing the outstanding principal to $4.7 million [2]. Share Issuance Details - Cannara proposes to issue 3,462,763 common shares at a deemed price of $1.80 per share to satisfy the outstanding indebtedness, with 851,652 shares representing the repayment of interest [3]. - The issuance is subject to the policies of the TSX Venture Exchange and requires their review and approval [4]. Related Party Transaction - The transaction is classified as a "related party transaction" due to Mr. Derek Stern's significant interest in Olymbec, and Cannara intends to rely on an exemption from minority shareholder approval requirements [5]. - Following the share issuance, Olymbec will hold approximately 25.47% of Cannara's issued and outstanding common shares [6]. Corporate Governance - The Proposed Olymbec Share Issuance has been approved by independent directors of the company [7]. Investor Relations - Cannara granted 40,000 stock options to Bristol Capital Ltd. for investor relations services, with each option exercisable at $1.80 per common share [8].