Toronto, ON, Sept. 29, 2022 (GLOBE NEWSWIRE) — Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announced that it has entered into a second loan modification agreement (the “Second amending agreement”) to an original loan agreement dated March 29, 2021, as amended October 4, 2021 with BJK Holdings Ltd. (“BJK”) totaling $19.775 million across four facilities (collectively the “Ready”).
As a result of the second amending agreement, the maturity date of the loan has been extended to November 30e2024 (the “Due date”), and an additional loan facility in the amount of $4,985,000 has been granted to the Company, bringing the total amount of proceeds the Company has access to through the loan to $19.775 million. A one-time loan modification fee of $985,000 was paid to BJK on September 29, 2022.
At Closing, the monthly interest rate on the Loan will be calculated at the Royal Bank of Canada Prime Rate (“RBC Bonus”) minus 1.75%, with the exception of the third installment of the Loan which will be calculated at 15% per annum. The interest rate on the loan will be increased in installments up to a maximum amount on the maturity date of RBC Prime plus 10%, but in no event greater than 18%, except for the third facility of the loan which on the Maturity Date will be RBC Prime plus 10% but in no event less than 15% per annum.
As part of the loan, Heritage issued a new warrant certificate to BJK on September 29, 2022 allowing BJK to subscribe for and purchase up to 50,000,000 common shares in the capital of Heritage at a price of exercise of $0.10 per common share (the “Additional mandates”). The additional warrants have an expiry date of February 28, 2025. Heritage has also agreed to amend an existing warrant certificate held by BJK dated October 8, 2021 which authorized BJK to subscribe and purchase up to 10 000,000 common shares in the capital of Heritage at an exercise price of $0.25 per share (the “Existing Warrants”). Effective September 30, 2022, the Company will amend the existing warrants so that the expiration date for BJK to exercise the existing warrants is extended from October 8, 2023 to February 28, 2025.
Heritage will use the loan proceeds for general corporate purposes.
“We are delighted that BJK has extended the maturity of our loan and given us additional capital to allow us to continue to execute our strategy,” said David Schwede, CEO of Heritage.
About Heritage Cannabis Holdings Corp.
Heritage is a leading cannabis company providing innovative products to the legal medical and recreational cannabis markets in Canada and the United States, operating out of two licensed manufacturing facilities in Canada. The company has an extensive portfolio of high-quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5, feelgood., CB4, Thrifty and ArthroCBD.
ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.
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The Canadian Securities Exchange accepts no responsibility for the adequacy or accuracy of this release.
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or the current condition, but rather represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain. and outside the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “anticipates”, “expects” or “does not expect”, “is expected”, ” budget”, “planned”. “, “estimates”, “plans”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and phrases or may contain statements that certain actions , events or results “may”, “could”, “would”, “could” or “will be taken”, “will continue”, “will occur” or “will be achieved”.
By identifying such information and statements in this manner, the Company cautions the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements of the Company. be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to a number of risks, including, without limitation, the risks described under the heading “Risks and Uncertainties” in the annual management report of the Company for the financial year ended. on October 31, 202.1 and dated May 10, 2022. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be not those anticipated, estimated or intended.
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in the preparation of, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurances or warranties can be assured that such forward-looking information and statements will prove to be accurate, as future results and events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements contained or referred to herein. , except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.