The Ontario Securities Commission (OSC) issued a partial revocation of a cease trade order (FFCTO) against Molecule Holdings Inc. The FFCTO was initially imposed due to the company’s failure to file its audited annual financial statements and related documents for the fiscal year ending October 31, 2023. Molecule Holdings sought the partial revocation to proceed with a debt settlement transaction and a private placement to raise up to $300,000. The funds will be used to comply with continuous disclosure obligations, pay outstanding fees, and for working capital.
The company plans to amend the terms of its unsecured debentures, including extending maturity dates, reducing conversion prices, and providing a premium on the principal amount. Additionally, Molecule Holdings intends to issue new securities under exemptions provided by National Instrument 45-106 Prospectus Exemptions.
The OSC granted the partial revocation subject to conditions, including obtaining acknowledgements from transaction participants that the securities will remain subject to the FFCTO until a full revocation is granted. The order will terminate upon the closing of the transactions or 90 days from the date of the order, whichever is earlier.
Relevant laws: Securities Act, R.S.O. 1990, c. S.5, as amended, sections 127 and 144.