Nabis to miss June 30 interest payment on 8% convertibles due 2022

By Wendy Van Sickle

Columbus, Ohio, June 29 – Nabis Holdings Inc. will not make the quarterly interest payment due June 30 to holders of its C$35 million of 8% convertible debentures due March 26, 2022, according to a news release.

The company said it will defer the payment obligation as a result of the overall decline of the cannabis markets and extraordinary market conditions resulting from Covid-19.

Under the debentures’ indenture, Nabis cannot be held in breach if it is delayed in performance of any provision by an epidemic, according to the release.

“Covid-19 has made raising capital virtually impossible during the global pandemic, but we are very pleased with the increases we are seeing in top-line revenue at our dispensary in Arizona, which has increased close to 90% with gross margins hovering around 50%. This increase in revenue and margins, coupled with an aggressive cost cutting exercise, has the company moving in the right direction towards profitability, positive EBITDA and operational cash flow,” Shay Shnet, chief executive officer of the company, said in the release.

The investment issuer that invests in cash-flowing assets across multiple industries, including real property and all aspects of the U.S. and international cannabis sector, is based in Vancouver, B.C.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.