DionyMed Brands Inc. (CNSX:DYME) announced a private placement of secured convertible note for gross proceeds of CAD 2,628,720 ($2,000,000) on August 1, 2019. The transaction included participation from Gotham Green Partners, LLC. The note bears interest at LIBOR +12.5% per annum. During the first six months, interest may be paid-in-kind at the company’s option such that any amount of paid-in-kind interest will be added to the outstanding principal of the note. The note is convertible at any time at the option of the holder, into Subordinate voting shares at a price equal to CAD 1.45 per share, which represents 115% of the 10-day volume-weighted average price of the subordinate voting shares on the Canadian securities exchange prior to the execution of the term sheet with respect to the note. The company also issued 1,671,151 warrants to investor with an exercise price of CAD 1.58 per warrants, each warrant is exercisable to purchase one subordinate voting share of the company for a period of 36 months from the date of issue. The Company shall have the right prior to December 31, 2019 to make a one-time prepayment at 125% of the outstanding principal amount of the note and investor shall forfeit its conversion right. If the company elects to exercise the one-time prepayment option, then the warrant coverage shall be reduced by 50%. All securities issued pursuant to the offering will be subject to a hold period of four months, in accordance with applicable Canadian securities laws.