The previous session closed with Invesque Inc (OTCPK: MHIVF) stock up 14.53 % at $2.0500. The price of MHIVF stock ranged from $1.8900 to $2.0531 during the session, with 7.72K shares changing hands. MHIVF’s stock gained traction after it upgraded the terms of its convertible debt.
Which of MHIVF’s debentures has been enhanced?
A North American real estate company, Invesque is focused on utilizing health care services in proportion to the increasing aging population in North America. In order to capitalize on this opportunity, MHIVF has invested in a highly diversified portfolio of properties throughout the health care industry.
MHIVF’s portfolio is composed of properties specializing in independent living, assisted living, memory care, skilled nursing, transitional care, and medical office properties, all of which are operated under long-term leases or joint venture arrangements with industry leaders. Through its subsidiary management company, Commonwealth Senior Living, MHIVF also owns and manages owner-occupied seniors housing properties in which it owns the real estate and provides management services.
Invesque announced this week that at a meeting of holders of its 5.00% 2016 Convertible Debentures due January 31, 2022 they will seek approval to enhance the terms of the Debentures. The meeting is scheduled for November 2, 2021. Upon approval of the proposed enhancements to the Debentures by the Debentureholders, the following changes will take place:
- Effective January 31, 2022, the underlying interest rate will increase to 6.25%.
- REDUCTION of the conversion price from US$11.00 for one share of MHIVF to US$6.00 for one share.
- The maturity date is extended from January 31, 2022 to January 31, 2025.
Upon redemption of these Amended Debentures on January 31, 2022, US$ 10,000,000 of the principal amount of the outstanding Debentures, plus accrued and unpaid interest shall be retired pro rata to the outstanding amount of the Amended Debentures.
The Debenture Amendments will only allow Partial Redemptions after January 31, 2024, and will not allow redemption prior to that date. Amended Debentures may be redeemed by MHIVF in whole or in part at a price equal to their principal amount plus accrued and unpaid interest up to the date of redemption. To qualify, there must be a market price of at least 125% of the US$6.00 conversion price at the time of the deal.
MHIVF moving forward:
Through the reduction in leverage and enhancement of financial flexibility, Invesque (MHIVF) has significantly improved its financial position over the last several months. Despite challenges such as COVID, MHIVF continues to see positive momentum in operations despite the operating environment. MHIVF would benefit from funding flexibility by extending the maturity of the Debentures so it could focus on key strategic, business, and operational targets that will benefit all stakeholders.