Tetra Bio-Pharma completes divestiture of subsidiary Lumiera Health to Mondias Natural Products

Tetra Bio-Pharma Inc (TSE:TBP) (OTCQB:TBPMF) (FRA:JAM1) announced Wednesday that it has completed the divestiture of its subsidiary Lumiera Health Innovation Inc to Mondias Natural Products Inc (CVE:NHP).  In a statement, Tetra said that Mondias has acquired Lumiera for a purchase price of C$1.3 million, satisfied by the issuance of 16,250,000 Mondias shares at C$0.08 each. Some 14,625,000 Mondias shares have been received by Tetra and 1,625,000 received by minority shareholders.   Tetra said the total amount of shares represented an increase of 250,000 common shares from the original amount, which was intended to compensate Tetra and the minority shareholders for the delays in closing the transaction and additional costs.  READ: Tetra Bio-Pharma inks research deal to study ARDS-003 in coronavirus animal model In other news, Tetra said that it, Mondias, and a third-party private lender have agreed to amend the C$2 million convertible debt facility entered into between Lumiera and the Private Lender on August 27 into a C$3 million non-convertible debt facility of which C$2 million has been drawn.  As additional guarantees, Tetra also pledged the 14,625,000 Mondias shares that Tetra received as consideration for the transaction. If the private lender calls on Tetra to repay the amended note pursuant to its guarantee, Tetra is entitled to either pay in cash or elect to issue its own shares in lieu of a cash payment, subject to the TSX's approval.  Should the TSX not approve this issuance of shares, Tetra said it will be obligated to repay the residual amount in cash. As part of the negotiations, Tetra obtained a waiver from the private lender of certain defaults under the initial note purchase agreement, subject to Tetra meeting certain conditions. The amended note will come to maturity on February 27, 2022. Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham