CBD Global Sciences, Inc. is pleased to announce the completion of its previously announced (August 12, 2021) debt restructuring involving the retirement of over CDN$9 million in outstanding debt through the issuance of 8,908,876 Common Shares at an issue price of $0.1575 per share and 318,688 Series A preferred shares at an issue price of USD$14 per share.
2,721,721 of the common shares were issued to service providers controlled by non-arm’s length persons for expenses incurred on behalf of the Company, 5,767,155 of the common shares were issued to MAC5 Mortgage Inc., a company controlled by non-arm’s length persons, for working capital debt incurred by the Company over the past 18 months and 420,000 common shares were issued to arm’s length service providers for settlement in respect of services provided to the Company by consultants and for consulting services (collectively, the “Consultants”). The transactions with the Consultants were in the normal course of business and the consideration provided was agreed to by the Company and the Consultants.
318,688 Series A preferred shares were issued to holders of GVC notes for retirement of outstanding principal and interest accrued on over USD$4MM in outstanding secured notes.
A statutory hold period of four-months and one day is in place on the issuance of these shares in accordance with applicable securities laws.
Brad Wyatt, CEO of CBD Global Sciences, said, “Another positive step in the right direction for our Company and its Investors. I am pleased to see this happen going into 2022, a year that will demonstrate continued wins for our Company!”