City View Green Holdings Inc. ($CVGR) operates as an integrated cannabis company. It’s known for the development of medicinal and recreational cannabis products. Once City View holds the Cannabis Act processing and sales licenses, the company will include food production and extraction with cannabis at its plant in Brantford, Ontario. The goal is to produce quality food, oils and distillates for the food and beverage markets that contain cannabis. In June 2020, City View announced that debts will be resolved, resuming construction of the cannabis plant. The percentage of debt has been reduced and the balance has been strengthened. Construction was initially halted in March 2020 due to COVID-19.
A preliminary agreement was reached with a corporate lender regarding the secured loan of $450,000 that was contracted in May 2019 and due to be paid on May 31, 2020. The Company issued 1,000,000 warrants to the lender in connection with the issue of ordinary shares, each exercisable for one ordinary share of the Company at a price of $0.15 until January 30, 2021. These securities have a holding period that expires on October 10, 2020 in accordance with applicable securities laws.
Subsequently, City View announces on July 20, 2020 that it has entered into a revolving credit line of $1,500,000 with a corporate lender, the closing date being April 7, 2021. An interest rate of 10% is charged and funds received related to this credit facility may only be used for: the purchase of business-related equipment, down payments for construction work and tenant improvements on the property, rent payments, taxes and insurance.
The Company announced that it intends to extend the exercise period of 6,700,000 outstanding share purchase warrants. The warrants were exercisable for one common share of the company (price per share $0.15). The exercise price remains unchanged with the proposed extension. The warrants were primarily issued on December 13, 2019 and were expiring on September 30, 2020. The new expiration date moves exactly one year to September 30, 2021.
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