Cannabis Co. Vext Announces Debt Conversion, Opens Door To 27 Million Shares For Investors
Portfolio Pulse from Jelena Martinovic
Vext Science, Inc. has reached agreements with debenture holders to convert $4.6 million of debt into 27,700,625 common shares at $0.175 each. The conversion is subject to regulatory approval and will release all security held by the debenture holders. Sopica Special Opportunities Fund Limited, an insider shareholder, is participating, making this a related party transaction. VEXTF's stock rose 9% to $0.218 after the announcement.
December 28, 2023 | 3:57 pm
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Vext Science, Inc. has announced a debt conversion, which will dilute current shareholders but potentially strengthen the company's balance sheet. The stock price has reacted positively, rising 9%.
The conversion of debt to equity often indicates a strengthening of the company's financial position by reducing debt obligations, which can be positive for the stock price in the short term. However, it also dilutes existing shareholders. The positive stock price reaction suggests the market views this news as favorable in the short term.
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