The new lower price increases the likelihood that warrant holders will be able to exercise their warrants prior to May 4, at which point some will expire — and which could net nearly C$3 million for the company
Inc () (OTCPINK:EURFF) (FSE:3CMA) is moving forward with a shareholder relief plan to reprice more than 59 million repurchase warrants in response to the market impact caused by the coronavirus (COVID-19).
The company is repricing all warrants to $C0.05, including those with a previous exercise price of between C$0.05 and C$0.125 and an expiry date between May 4, 2020 and January 15, 2022.
The lower price increases the likelihood that warrant holders will be able to exercise their warrants prior to May 4. If all the warrants subject to the shareholder relief plan are exercised during that period, EuroLife expects to generate roughly C$2.96 million in proceeds.
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Any warrants not exercised by May 4 will remain outstanding and exercisable under their original terms. This excludes the warrants issued on May 4, 2018, which will expire at 5 pm Pacific Time (PT) on that date.
"The capital markets are not immune to the COVID-19 pandemic and the repricing of warrants will, at the very least, provide warrant holders some financial relief in response to the undue impact of the coronavirus," Eurolife CEO Shawn Moniz said in a statement.
"In this time of crisis, our thoughts are with frontline workers and those who have been impacted by the COVID-19 pandemic. I encourage everyone to stay safe and healthy."
The move constitutes a related-party transaction within Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions since related parties hold some of the warrants being amended, the company said. However, an exemption from formal valuation and required minority approval comes into play because the warrants do not exceed 25% of EuroLife’s market cap.
EuroLife is a global markets cannabis brand based in Toronto, working to empower the medical, recreational and consumer packaged goods cannabis industries worldwide with a data-driven CBD marketplace.
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