Greenrose Acquisition in an 8-K filing said it issued an unsecured promissory note of $450,000 to its sponsor, Greenrose Associates, which owns more than 10% of the SPAC’s stock. The note for the loan is non-interest bearing and payable upon the consummation of a business combination.
The SPAC’s sponsor last month deposited $569,250 into the trust account to extend its merger deadline until Sept. 13. Greenrose has the right to exercise to extend the time available to close its pending business combinations for up to two additional months.
The company will have up to $276 million going into its acquisition of four cannabis companies. Terms call for Greenrose to acquire the companies for approximately $210 million, consisting of $170 million in cash, $15 million in stock and $25 million in debt. Read more.