Cannasouth has issued NZ$1.22 million in convertible notes after a Deed of Company Arrangement (DOCA) aimed at saving the firm from liquidation was executed last month.
Under the offer, only wholesale investors, eligible investors and close business associates, as defined by the Financial Markets Conduct Act 2013, are entitled to participate.
The notes, which have a term of 24 months and bear an interest rate of 10%, can be redeemed for cash at expiry or converted (wholly or partially) into ordinary shares in the NZX-listed company at an issue price of three cents per share at any time prior.
The exercise of the conversion rights is subject to shareholder approval on or before January 31, 2026.
Cannasouth entered voluntary administration in March after running into financial difficulties.
In June, a group of unnamed investors tabled the DOCA under which they would inject NZ$1.5m to $3m into the company via convertible notes to pay creditors and provide working capital. It was executed in July.
