07:51 AM EDT, 06/05/2024 (MT Newswires) -- Acreage Holdings, Inc. (CSE: ACRG.A.U, ACRG.B.U), a vertically integrated, multi-state operator of cannabis cultivation and retailing facilities in the U.S., that gained near 12% yesterday, entered Wednesday into subscription agreements with certain institutional investors to issue units by way of a brokered private placement at a price of US$833.33 per Unit, for gross proceeds to the company of US$10 million.

Each Unit will consist of US$1,000 principal amount of non-recourse unsecured convertible notes, reflecting a 16.67% original issue discount, convertible into that number of Class E subordinate voting shares of the company at the Conversion Price and also of Fixed Share purchase warrants, with each exercisable to acquire one Fixed Share at the Exercise Price at any time on or before the date which is 60 months after the closing date of the Offering. The number of Warrants to be issued to each Investor shall be the quotient obtained by dividing the aggregate US$10 million subscription amount of the Units by the Exercise Price.

The company is party to an arrangement agreement with Canopy Growth Corporation ( CGC ) dated April 18, 2019, as amended, relating to the proposed acquisition of all issued and outstanding Fixed Shares.