Agraflora Organics International Inc () (OCTMKTS:AGFAF) has said it is exchanging $3 million worth of debentures for shares in the company.

The firm said it agreed with holders of its 10% senior unsecured convertible debentures due March 12, 2021, that provides for the purchase of $3 million aggregate principal amount of the debentures.

The cannabis company will distribute nearly 55 million shares priced at C$0.05472, which is the daily volume-weighted average price of shares between June 24, 2020, and June 30, 2020.

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The firm settled an interest payment of C$1.5 million through the issuance of 27.4 million shares on a pro-rata basis to debenture holders. Each interest share will be issued at the share price.

In addition, Vancouver-based Agraflora said it resolved a C$220,000 debt by issuing 4 million shares priced at C$0.05 to certain creditors of the company.

AgraFlora grows, distributes and markets premium cannabis and cannabis-infused products. 

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