Diamond Estates to Convert $4.7 million Debenture Principal, Lifting Lassonde Group Stake to 66.62%

Diamond Estates Wines & Spirits will convert $4.7 million in debenture principal at $0.22 per share on November 9, 2026, with the Lassonde Group's stake expected to rise from 50.85% to approximately 66.62%, TradingView reported. The company also intends to convert $1.5 million in accrued interest at $0.13 per share, subject to TSXV approval.

How the Diamond Estates Debenture Conversion Works

The principal conversion settles debenture principal in shares, increasing the share count and avoiding cash repayment, according to the report. The proposed interest conversion is priced at the November 6 closing price and requires TSXV approval. The debentures mature on November 9, 2026, and the conversions address principal and accrued interest due at maturity.

Lassonde Industries reported Q2 2026 sales of $737.7 million, down 0.5% year-over-year, with adjusted EPS up 36.2% to $7.45 and net EPS down 21.6% to $3.95, GlobeNewswire reported. The company expects 2026 sales to be slightly lower than 2025, citing consumer health and inflation.

Diamond Estates Funding Records Show Lassonde Support

According to akta.pro company records, Lassonde Industries, a 51.56% owner, acquired an additional $1.3 million convertible debenture in January 2026 and a further debenture in May 2026, providing ongoing capital to support the company's strategic turnaround plan. The same records list 10 funding rounds, including a 2026-08 debt-funded round of $544,750 led by Lassonde, a 2026-05 post-IPO debt round of $730,557 led by Lassonde, a 2026-01 post-IPO debt round of $958,640 led by Lassonde, and a 2025-11 post-IPO debt round of $2.6 million led by Bank of Montreal.

Diamond Estates Moves Before the Conversion

Diamond Estates announced a three-year strategic plan on September 17, 2026, outlining growth initiatives across six sales channels, with execution in three phases, Stock Titan reported. The company issued 1,881,585 deferred share units to employees on August 31, 2026, settling $282,237.75 in bonuses, with units valued at $0.15 each, Newsfile reported. Diamond Estates also entered a ninth amendment to its Second Amended and Restated Credit Agreement with Bank of Montreal, extending the maturity date to October 30, 2026, Stock Titan reported.

TSXV Approval Timing for the Interest Conversion

The interest conversion of $1.5 million at $0.13 per share remains subject to TSXV approval, with the principal conversion set for November 9, 2026.