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The Smith Group – Early Warning News Release

Mount Equity Group Tokyo, Japan > News > Markets > The Smith Group – Early Warning News Release

TORONTO, June 8, 2021 /CNW/ – William Smith, Can Endeavour LLC, Endeavour Holdings LLC and Sage Investing LLC  (collectively, the “Smith Group”) announced that, pursuant to the terms of a proposed (but not delivered, originally or as to be reissued) amended and restated promissory note dated January 16, 2020 (the “Note”) from Cansortium Inc. (“Cansortium”) in the principal amount of US$12,933,290.02 that was owing to Can Endeavour LLC, on May 6, 2021 Can Endeavour LLC was permitted by Cansortium to convert the Note into 21,555,483 common shares (“Common Shares”) of Cansortium at a price of US$0.60 per Common Share (the “Conversion”).

As a result of the Conversion, the Smith Group’s common share holdings increased by 6.86%.

Prior to the Conversion, the Smith Group held 222,222 warrants to purchase additional Common Shares at an exercise price of $0.45 per share, 1,421,538 proportionate voting shares (the “PVS”), representing 19.18% of the then outstanding PVS, and 14,102,608 Common Shares, representing 12.39% of the then outstanding Common Shares. Each PVS carries 10 votes per share and is also convertible into 10 Common Shares.

Following the Conversion, the Smith Group holds 222,222 warrants to purchase additional Common Shares, 1,421,538 PVS, representing 26.02% of the current outstanding PVS, and 35,658,091 Common