Jersey-based medicinal cannabis producer Northern Leaf is closing in on an eleventh-hour multi-million-pound investment to save it from liquidation.
Chief executive Geoff Eyre said that, while it was "by no means yet a done deal", the company was hoping to finalize a £2.5m three-year convertible loan with two investors who have "proven track records of successfully developing and operating highly profitable cannabis grows".
This means the investors can convert the debt into equity in the company at any point during the three-year term, of either 80% – if Northern Leaf is valued at more than £100 million – or 90% – should it be valued at £100 million or less.
In a statement yesterday, the grower said it remained "in a precarious financial state" with less than £25,000 cash in the bank.
Read more at: www.jerseyeveningpost.com