TORONTO, ON, September 29, 2022 (GLOBE NEWSWIRE) – Heritage Cannabis Holdings Corp (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”) announced today that it has entered into a second loan modification agreement (“Second Amended Agreement“) with the original Loan Agreement dated March 29, 2021, as amended on October 4, 2021 with BJK Holdings Ltd. (“BJK“) for a total of $19.775 million across four facilities (together referred to as “the”).loan“).
As a result of the Second Amendment Agreement, the loan maturity date has been extended to November 30The tenth2024 (“maturity date”), and an additional loan facility of US$4,985,000 was provided to the Company, bringing the total amount of proceeds accessible to the Company through the loan to US$19.775 million. A one-time loan modification fee of US$985,000 was paid to Bank Japan on September 29, 2022.
At closing, the monthly interest rate for the loan will be calculated in accordance with the prime lending rate of the Royal Bank of Canada (“RBC”).Head of RBC”) minus 1.75%, excluding the third loan facility which will be charged at 15% per annum. The interest rate on the loan will be increased in increments up to the maximum amount on the maturity date of RBC Prime plus 10% but in no case more than 18%, except for the third facility of the loan which is on the maturity date which will be RBC Prime plus 10% but not less From 15% annually in any case.
In connection with the loan, Heritage issued a new Certificate of Note to BJK on September 29, 2022 authorizing BJK to subscribe and purchase up to 50,000,000 common shares in Heritage’s share capital at an exercise price of $0.10 per common share (“Additional commandsThe additional guarantees will expire on February 28, 2025. Heritage has also agreed to amend an existing warrant certificate held by BJK dated October 8, 2021 which grants BJK to subscribe and purchase up to 10,000,000 ordinary shares in Heritage share capital at an exercise price of $0.25 per share ( “Menu commandsEffective September 30, 2022, the Company will amend existing orders so that the expiration date for BJK to exercise existing orders will be extended from October 8, 2023 until February 28, 2025.
Heritage will use the loan proceeds for general corporate purposes.
“We are pleased that BJK has extended the maturity of our loan and granted us additional capital allowing us to continue implementing our strategy,” said David Shwedi, CEO of Heritage.
About Heritage Cannabis Holdings Corp.
Heritage is a leading cannabis company providing innovative products to both the legal and recreational cannabis markets in Canada and the United States, operating under two licensed manufacturing facilities in Canada. The company has a wide range of quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5 and feelgood. and CB4, Thrifty, and ArthroCBD.
On behalf of the Board of Directors of the Cannabis Heritage Holding Company.
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The Canadian Stock Exchange is not responsible for the adequacy or accuracy of this release.
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation 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. This forward-looking information Forward-looking statements do not represent historical facts or information or the current situation, but instead only represent the Company’s beliefs regarding future events, plans or objectives, many of which are inherently uncertain in nature and outside the Company’s control. Generally, such forward-looking information or forward-looking statements may be identified by the use of forward-looking terms such as “plans,” “expects,” “does not anticipate,” “expects,” “budget,” “scheduled,” “estimates,” or anticipates, intends, anticipates, does not anticipate, believes, or various forms of these words and phrases may contain, or may contain, statements that some action, event, or outcome “may,” “could” , “will”, “could” or “will be taken”, “will continue”, “will happen” or “will be realized”.
By identifying this information and data in this way, the Company alerts the reader that such information and data are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company. be materially different from that expressed or implied by such information and data.
Investing in the Company’s securities is speculative and is subject to several risks including, but not limited to, the risks discussed under “Risks and Uncertainties” in the Company’s Management Annual Discussion and Analysis for the year ended October 31, 2021 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 forward-looking information and forward-looking statements, there may be other factors that cause results not to appear as expected, estimated or intended.
With respect to 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, and the expectations contained therein, the forward-looking information and statements are reasonable, it should not place undue reliance on such information and statements, and no warranty or guarantee can be made that such information and forward-looking statements will prove to be accurate and factual. Future results and events may differ materially from those projected 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 undertakes no obligation 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.