Early Warning Press Release in Accordance with National Instrument 62-103
MWN-AI** Summary
On July 25, 2025, Catcher Investments Ltd. ("Acquiror") announced the acquisition of 3,000 unsecured convertible debentures of Optimi Health Corp. ("Issuer") as part of a non-brokered private placement, totaling CAD$3,000,000. Each convertible debenture is priced at CAD$1,000 and carries a 15% annual interest rate, payable in cash quarterly, maturing in twelve months, extendable to twenty-four months. The principal amount can be converted into common shares of the Issuer at a conversion price of CAD$0.15.
Upon maturity, the Issuer will repay the principal and any unpaid interest in cash or, at the Acquiror’s option, via the issuance of common shares. Conversion of the debentures into common shares may happen at any time before the maturity date, with interests also convertible into shares at the Acquiror's discretion.
Before this acquisition, the Acquiror held 8,237,501 common shares, representing approximately 8.52% of the Issuer's total shares outstanding on an undiluted basis. Post-acquisition, the Acquiror retains control over the same number of common shares, alongside 1,225,000 warrants and 450,000 stock options. This translates to an ownership stake of approximately 8.52% on an undiluted basis and roughly 10.08% on a partially diluted basis.
The Acquiror may engage in further acquisition or disposition of the Issuer’s securities depending on market conditions and investment opportunities. For further details, an early warning report will be filed with Canadian securities regulatory authorities, and interested parties can contact Leah Hodges or check the Issuer's SEDAR+ profile.
MWN-AI** Analysis
The recent press release from Catcher Investments Ltd. regarding the acquisition of CAD$3 million in unsecured convertible debentures from Optimi Health Corp. presents several critical insights for market participants, particularly those interested in the cannabis sector, where Optimi is an established player.
The 15% annual interest rate on the convertible debentures indicates a significant level of risk associated with the investment, positioning the issuer as a higher-yield opportunity compared to many traditional fixed-income securities. This high yield is generally reflective of the volatility and uncertainties prevalent in the cannabis market. Investors should consider this rate when assessing their risk appetite and investment strategy.
The conversion feature at a price of CAD$0.15 per common share suggests an expectation of future appreciation in Optimi's stock. With Catcher already holding approximately 8.52% of the company's equity on an undiluted basis, this positioning could signal confidence in Optimi's growth trajectory. Notably, as the market volatility is a characteristic of the cannabis sector, potential investors may want to monitor fluctuations in Optimi's share price, particularly as the conversion price approaches the current market valuation.
The ability of the Acquiror to potentially increase its stake or to dispose of securities depending on market conditions indicates a flexible investment strategy. Investors should watch for further announcements from Catcher that could impact share prices. Given that the Acquiror has a partially diluted interest of around 10.08%, any additional purchases or sales could influence market perception and Optimi's share value.
Overall, this news underlines both the investment opportunities and risks associated with Optimi Health Corp. The current high-interest environment, coupled with the convertible feature, presents an intriguing investment landscape, though discerning investors should remain vigilant about potential stock dilution and market dynamics.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Vancouver, British Columbia--(Newsfile Corp. - July 25, 2025) - Catcher Investments Ltd. (the "Acquiror") acquired 3,000 unsecured convertible debentures (each a "Convertible Debenture") of Optimi Health Corp. (the "Issuer") at a price of CAD$1,000 per Convertible Debenture for a total investment of CAD$3,000,000 pursuant to a non-brokered private placement. The Convertible Debentures bear interest at a rate of 15.0% per annum, calculated and payable quarterly in arrears in cash, maturing twelve (12) months from the date of issuance or, if extended by the Acquiror, twenty-four months (24) from the date of issuance (the "Maturity Date"). The principal amount of each Convertible Debenture is convertible into common shares of the Issuer (each a "Common Share") at a conversion price of $0.15 (the "Conversion Price"). On the Maturity Date, any outstanding principal amount of the Convertible Debentures, plus any accrued and unpaid interest thereon, will be repaid by the Issuer in cash or, at the option of the Acquiror, through the issuance of Common Shares. The principal amount of the Convertible Debentures, in whole or in part, will be convertible into Common Shares at the Conversion Price at the option of the Acquiror and for no additional consideration upon written notice from the Acquiror to the Issuer at any time prior to the close of business on the Maturity Date. Upon conversion of all or any of the Convertible Debentures, all accrued and unpaid interest outstanding to the date of the conversion on any such converted Convertible Debenture shall be paid in cash or in Common Shares at the election of the Acquiror. In the event that the Acquiror elects to convert all or a part of the accrued and unpaid interest into Common Shares, such Common Shares shall be issued at a deemed price equal to the most recent closing price of the Common Shares on the CSE prior to the receipt by the Issuer of a conversion notice from the Acquiror.
Prior to giving effect to the foregoing acquisition of Convertible Debentures, the Acquiror owned and/or had control over an aggregate of 8,237,501 Common Shares, representing approximately 8.52% of the issued and outstanding Common Shares of the Issuer on an undiluted basis. Following completion of the acquisition of the Convertible Debentures, the Acquiror owns or has control or direction over, directly or indirectly, 8,237,501 Common Shares, 1,225,000 warrants, and 450,000 stock options, representing approximately 8.52% of the issued and outstanding Common Shares of the Issuer on an undiluted basis and approximately 10.08% of the total issued and outstanding Common Shares of the Issuer on a partially diluted basis.
The Acquiror may acquire additional securities or dispose of securities of the Issuer in the future either on the open market, privately or otherwise depending on market conditions, reformulation of plans, other available investment business opportunities and/or other relevant factors.
For further information or to receive a copy of the early warning report filed by the Acquiror with securities regulatory authorities in Canada in connection with this press release, please contact Leah Hodges at (604) 377-0403 or refer to the Issuer's SEDAR+ profile at www.sedarplus.ca.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/260058
FAQ**
How do the recently acquired Convertible Debentures by Catcher Investments Ltd. contribute to the overall financial health and future growth potential of Optimi Health Corp. (OPTHF) in Vancouver's biotech sector?
What factors influenced Catcher Investments Ltd. to choose Optimi Health Corp. (OPTHF) for their CAD$3,000,000 investment in convertible debentures amid the current market conditions in Vancouver, British Columbia?
Given the maturity period of the Convertible Debentures acquired by Catcher Investments Ltd., how might changes in Vancouver's regulatory landscape impact Optimi Health Corp. (OPTHF) before the maturity date?
How does Optimi Health Corp.'s (OPTHF) conversion option on the debentures align with the investor's strategy in the growing health and wellness market within Vancouver, BC?
**MWN-AI FAQ is based on asking OpenAI questions about Optimi Health (OTC: OPTHF).
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