CBD Global Sciences Negotiates a Two-Year Extension on its Debt with GVC Note Holders
Denver, Colorado – TheNewswire – November 11, 2020 – CBD Global Sciences, Inc. (OTC:CBDNF) (CSE:CBDN) (CNSX:CBDN.CN) (Frankfurt:GS3), “CBD Global” or the “Company”), today announced today that it has successfully negotiated a two-year extension to the maturity date of $2.91M worth of its previously issued unsecured notes (the “Notes“). These filings are available for review on the Company’s SEDAR profile at www.sedar.com. All amounts are expressed in U.S. dollars.
Approximately $3.51M worth of outstanding convertible Notes assembled in the Company’s 2018 Note private placement completed by GVC Capital LLC (and as disclosed in the Company’s financial statements) were scheduled to expire October 2, 2020. The Company has successfully negotiated a two-year extension on over 80% of the remaining Notes to October 2, 2022, with all interest payments being accrued, creating an improvement to the balance sheet and cash flow for the Company’s operations. In addition, approximately $400,000.00 of the $3.51M of Notes will be purchased and converted into equity in the coming months, scheduled to begin mid-November with anticipated completion by year end 2020.
Additional modifications to the Notes were as follows:
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1. The face principal amount of the extended Notes was increased to $3,928,500;
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2. The accrual of interest payable under the Notes is now scheduled to begin on January 1, 2022 with the first interest payment being due on March 1, 2022; and
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3. The Company has sought an extension from the CSE on the expiry date of the 18,000,000 purchase warrants originally issued to Note holders from October 2, 2021 to October 20, 2023; and
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4. The Company has issued an additional 3,233,333 purchase warrants to extended Note holders at an exercise price of $0.30 per share expiring on October 2, 2023
“The partnership with the investors at GVC Capital has been as supportive and positive one. The additional time allotted for the conversion or payback of the notes will prove to be beneficial to both the Company and its investors, we are excited for the opportunities in front of us with the brand awareness and growth of our distribution channels,” said Brad Wyatt, CEO of CBD Global Sciences.
ABOUT CBD GLOBAL SCIENCES INC.
CBD Global Sciences, Inc., is a vertically integrated hemp-based CBD producer and branding investment vehicle which currently owns two product categories, branded under the name AETHICS (www.aethics.com) and CANNAOIL (www.cannaoilshop.com), which include CBD Oil tinctures (liquid products), CBD capsules, CBD topicals. CBD Global Sciences hemp-derived CBD extracts are sold through select distributors, brick and mortar retailers, and online.
For further information, please contact Investor Relations, (888) 401-2239, [email protected]
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to future developments and the business and operations of the Corporation after the CSE listing. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. Readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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