Citizen Stash Cannabis Corp. announced it has signed a binding commitment for private placement of 6% secured convertible debenture for gross proceeds of CAD 1,500,000 on August 31, 2021. The transaction will include participation from new investor The Valens Company Inc. The company and investor would enter into convertible debenture agreement.

The debenture will be subject to customary terms, bear interest at 6% and will be due six months from the date of issue, subject to earlier termination under certain circumstances. The principal amount of the debenture plus accrued interest will be convertible into company's common shares at a conversion price of CAD 0.39 per common share at any time prior to maturity. In connection with the transaction, company will also issue investors warrants to acquire 1,923,077 company's common shares at an exercise price of CAD 0.585 per common share for a period of one year.

The debenture, the warrants and the company's common shares underlying the debenture and the warrants will be subject to a statutory hold period until February 6, 2022. The debenture is secured through a security interest in all of its property and is effectively subordinated to certain pre-existing security interests.