LEEF Brands, Inc., a publicly traded cannabis company, is making history as the first in the industry to adopt Bitcoin as a treasury reserve asset.
The company has announced a private placement offering of up to $5 million in Bitcoin-backed convertible debenture units. Canaccord Genuity will act as the lead agent for the offering, which is expected to close in January 2025. Each unit includes $1,000 in convertible debentures and 5,660 detachable common share purchase warrants. The debentures will mature in 2030, with a 10% annual interest rate, and are convertible into shares at $0.18 per share. Warrants will allow holders to purchase shares at $0.28 for up to 36 months.
The proceeds will be used to acquire additional Bitcoin, fund growth initiatives, and cover general corporate expenses. LEEF has already acquired 3.937 Bitcoin at an average price of $88,255.17 and secured it in an institutional-grade cold wallet. Following the offering, any future Bitcoin trades will be at management’s discretion.
Jamie Warm, former CEO of Henry’s Original and a seasoned Bitcoin consultant, has been appointed Vice President of Strategy to oversee the integration of Bitcoin into LEEF’s operations. Warm brings expertise in both cannabis and cryptocurrency sectors, aiming to position LEEF as a trailblazer in the crossover between the two industries.
“Cannabis needs Bitcoin,” said Warm. “This strategy enhances shareholder value and provides financial resilience in a challenging industry. The Bitcoin-backed bond demonstrates the compatibility of Bitcoin and cannabis, offering a new standard and hope for the industry.”
LEEF CEO Micah Anderson expressed confidence in the strategy and in Warm’s leadership. “Jamie and I share a vision for how Bitcoin can amplify LEEF’s growth and value while building a successful cannabis company. This step reflects the similarities between the cannabis and Bitcoin industries and their shared potential for transformation.”
The Bitcoin-backed debentures will be secured by Bitcoin held by the company, marking a significant innovation in both cannabis finance and digital asset management. While this approach carries risks due to Bitcoin’s price volatility, LEEF believes it aligns with its mission of maximizing shareholder value and operational excellence.
At the time of publication, Bitcoin is valued at $103,653, up 145% from 12 months ago, and up 1,348% from five years ago.
