The Cannabist Company Attacks Debt With Repurchasing Agreement To Reduce Leverage By Up To $25M
Portfolio Pulse from Nina Zdinjak
The Cannabist Company Holdings Inc. has entered into a binding agreement with offshore institutional investors to repurchase up to $25 million of its 6.0% senior secured convertible notes due June 2025. This move is part of the company's strategy to reduce leverage and interest expenses. ATB Capital Markets served as the financial advisor for the transaction. The company has also obtained waivers from holders of $34.5 million of the notes, and if holders of the remaining $5 million participate, an additional $3.57 million of the notes could be repurchased. The company's stock closed 2.14% lower at $0.0111 per share on Monday.
January 23, 2024 | 1:57 pm
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The Cannabist Company's repurchase agreement to reduce debt by up to $25M could strengthen its balance sheet and potentially improve investor confidence.
The repurchase of debt is generally viewed positively as it indicates a company's commitment to reducing leverage and interest expenses, which can lead to improved financial health and potentially better stock performance. However, the impact may be somewhat muted given the company's small market cap and the low trading price of its shares.
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IMPORTANCE 75
RELEVANCE 100