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Canadian Convertible Debenture Market

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...Keen on Mogo Finance / Important new upswing in place maybe

I sold half my Mogo Debs at $99, as the stock made a wild surge on a News release

MOGO... YTD: 6mo : 10d: / Last: 1.29 / Mogo.DB: 83.0-90.0

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NEWS

Date ET Symbol Price Type Headline
2020-07-16 07:15 C:MOGO 1.79 In the News Globe says Canccord's Taylor keen on Mogo Finance
2020-07-15 15:28 C:MOGO 1.24 News Release Mogo to release Q2 2020 results Aug. 11

The Globe and Mail reports in its Friday, July 17, edition that Canaccord Genuity analyst Doug Taylor raised his share target on Mogo Finance Technology to $4 from $3, citing better-than-expected second quarter results. The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Taylor wrote about the jump in Mogo shares in the wake of the release of the company's preliminary second quarter financial results Thursday: "Beyond the strong financial performance in the quarter, we believe that the positive commentary around the performance of the loan book is driving this relief rally in the shares. We believe that, as credit concerns around the loan portfolio lift, investors will be able to focus on the growth opportunities ahead, including the roll-out of the MogoSpend product to its one-million-plus member base." Mr. Taylor continues to rate the shares "speculative buy." He believes "there is substantially more upside as the company builds out a track record of sustained cash flow profitability."

MOGO ANNOUNCES PRELIMINARY SECOND QUARTER 2020 FINANCIAL RESULTS

Mogo Inc. has provided a preliminary update on its financial results for the second quarter ended June 30, 2020.

Q2 2020 financial highlights

Mogo is expecting to report:

  • Revenue of $10.3 million to $10.5 million;
  • Adjusted EBITDA of $4.5 million to $5.0 million;
  • Positive operating cash flow net of investing activities of $6.5 million to $7.0 million.

Management Commentary

"Given the continued uncertainty caused by COVID-19, we believe it is important to provide a preview of our Q2 results, which demonstrate the resiliency of our financial model, the impact of our actions to create a leaner, more efficient cost structure and the levers in our business we can manage to significantly increase operating cash flow," said Greg Feller, President and CFO. "These steps helped drive a material and better-than-expected sequential improvement in net cash generated from operating and investing activities, as well as our highest-ever Adjusted EBITDA. Our loan portfolio continues to demonstrate resiliency in these challenging economic times. The record-low default rates we experienced in April and May, continued in June, giving us now several months of encouraging data on this diverse portfolio."

About Mogo

Mogo -- a financial technology company -- offers a finance app that empowers consumers with simple solutions to help them get in control of their financial wellness. Financial wellness continues to be the No. 1 source of stress across all demographics and highest among millennials. At Mogo, users can sign up for a free account in only three minutes and begin to learn the 4 habits of financial health and get convenient access to products that can help them achieve their financial goals. The Mogo platform has been purpose-built to deliver a best-in-class digital experience, with best-in-class products all through one account. With more than one million members and a marketing partnership with Canada's largest news media company, Mogo continues to execute on its vision of becoming the go-to financial app for the next generation of Canadians.

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FIRE.db / last: 27.95

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Supreme Cannabis amends convertible debenture terms

2020-08-04 10:31 ET - News Release

Ms. Beena Goldenberg reports

SUPREME CANNABIS ANNOUNCES AGREEMENT TO PARTIALLY CONVERT AND AMEND DEBENTURES

The requisite majority holders of The Supreme Cannabis Company Inc.'s outstanding 6 per cent senior unsecured convertible debentures issued in October, 2018, have agreed to amend the terms of the debentures.

"We are pleased to have reached an agreement that significantly reduces the company's debt obligations and amends the debentures in advance of their original maturity in October, 2021," said Beena Goldenberg, president and chief executive officer of Supreme Cannabis. "This transaction offers holders of the debentures with an improved conversion rate that is aligned with current market conditions and affords our company additional flexibility and runway to accelerate revenue growth and achieve cost optimization as we continue on our path to near-term profitability."

The company has reduced the principal amount of the debentures by $63.5-million in exchange for the issuance of 116.6 million common shares, thereby converting debt to equity at a premium to the current share price. Holders of the debentures resident in eligible jurisdictions will receive one-half of the common shares as free-trading shares, and the other one-half of the common shares will be subject to a four-month restricted period. Holders of the debentures resident in other jurisdictions will be entitled to receive shares that are subject to restricted periods, subject to applicable securities laws.

The total principal amount of convertible debentures outstanding will be reduced from $100-million to $36.5-million, and the maturity date will be extended from Oct. 19, 2021, to Sept. 1, 2025, unless repurchased, redeemed or converted prior to maturity. The remaining debentures will accrete at a rate of 11.06 per cent per year, compounding on a semi-annual basis, commencing on Sept. 1, 2020, and ending on Sept. 1, 2023. The accreted portion of the principal is payable in cash, but does not bear cash interest and is not convertible into the company's common shares. The accreted portion of the principal will be evidenced by a separate series of debentures, which will not be listed on the Toronto Stock Exchange.

The conversion price of the remaining convertible debentures outstanding will be reduced from $2.45 per share to 28.5 cents per share, and annual interest payments will be reduced to $2.9-million from $6-million. The company will have the right to force the conversion of the remaining principal amount of the convertible debentures outstanding at the conversion price on no less than 30 days of notice if the daily volume-weighted average trading price of the company's common shares is greater than 45 cents for any 10 consecutive trading days. The principal amount of the remaining debentures will amortize at 1 per cent per month over the 24 months prior to maturity.

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ChemTrade Logistics.    : O/S Prin.: Conver.: Price  :  Last Price : Yield : YTM

> / CHE.un: 92.6M units. : $ 450M  : - N/A - :  $4.86  : $4.85 - 4.86 : 12.3%: BV $7.66
B / 5.25% : 30 Jun., 2021: $ 14.5M*: $28.00: 100.35 : 100.2-100.5 : 5.23%:
C / 5.00% : 31 Aug., 2023: $143.8M: $24.85: $82.25: 82.00-82.50 : 6.08%:
D / 4.75% : 31 May, 2024: $201.1M: $26.70: $75.00: 73.00-77.00 : 6.33%:
E / 6.50% : 31 Oct., 2026: $100.0M: $15.80: $73.00: 72.00-73.90 : 8.90%:
F / 8.50%  : 30 Sep. 2025: $ 86.3M: $   7.35: $93.40: 93.00-93.79 : 9.10%:
======== : ====== Total: $545.5M:
> Update : https://www.stockwatch.com/Quote/Detail?C:CHE.UT

*redeemed $100M, 9-29, and $12.5M on Oct 5th, leaving just $14.5M

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IVQ / Invesque Inc. ... update:  Last: C$1.65

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===

T:IVQ.DB.V - INVESQUE INC 6.00 PCT DEBS USD > can be redeemed w/shares values at 95%

   IVQ.DB.V - T   40.0 81.00 · 82.75 39.0 81.00

T:IVQ.DB.U - INVESQUE INC 5.00 PCT DEBS USD  (raised to 7%??)

   IVQ.DB.U - T     3.0 67.01 · 74.00 11.0 75.00

===

On November 15, 2021, a meeting of holders of the 2016 Convertible Debentures was held whereby the holders of
2016 Convertible Debentures ("2016 Debentureholders") approved proposed amendments to the 2016 Convertible
Debentures. The approved amendments include the following changes to the 2016 Convertible Debentures:

1. Increase the interest rate from 5.00% to 7.00%, effective January 31, 2022.
2. Decrease the conversion price from $11.00 to $5.00 per share.
3. Extension of the maturity date from January 31, 2022 to January 31, 2025.
4. Approval of the redemption of $20,000 of the principal amount of the 2016 Co..

2018 Convertible Debentures
On August 24, 2018, the Company issued $50,000 aggregate principal amount of convertible unsecured subordinated
debentures (the "2018 Convertible Debentures"). The 2018 Convertible Debentures are due on September 30, 2023
and bear interest at an annual rate of 6.00% payable semi-annually in arrears on March 31 and September 30 of each
year commencing on March 31, 2019.

The 2018 Convertible Debentures are convertible into common shares of the Company at the option of the holder at a
conversion price of $10.70 per common share. The debentures will not be redeemable prior to September 30, 2021.
(delete?: On or after September 30, 2021, and prior to September 30, 2022, the 2018 Convertible Debentures may be redeemed
in whole or in part from time to time at the Company’s option, at a price equal to their principal amount plus accrued
and unpaid interest, provided that the volume weighted average trading price of the common shares on the Toronto
Stock Exchange for the 20 consecutive trading days preceding the date on which the notice of redemption is given is
not less than 125% of the conversion price.) On or after September 30, 2022, and prior to the maturity date, the 2018
Convertible Debentures may be redeemed by the Company, in whole at any time or in part from time to time, at a
price equal to the principal amount thereof plus accrued and unpaid interest.

Upon redemption or maturity, the Company may satisfy its obligations with respect to the convertible debentures in
cash or the issuance of common shares based on 95% of the Current Market Price...

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