Announces Debt Restructuring, Settlement for Equity, and Equity Offering
LEEF Brands (CSE: LEEF, OTCQX: LEEEF) is a scaled, vertically integrated operator in California. It holds the largest cultivation permit in Santa Barbara County, owns LEEF Labs, one of the state’s largest manufacturing companies, and has The Leaf dispensary in Palm Springs. The company recently successfully restructured its debt. LEEF Brands agreed to settle for equity a portion of its outstanding 11% convertible debentures due in 2024 into units of the company and extended the maturity of the remaining balance of its outstanding convertible debentures until 2027. An aggregate principal amount of approximately $3,954,000 will be converted into 224,045,353 units at a conversion price of C$0.029 per unit. The settlement will reduce interest expenses and better align shareholder interests. The remaining convertible debenture balance of approximately $7,995,000 has been extended to September 2027 and will continue to accrue interest at 11% annually. The extension allows LEEF to focus on growth projects without worrying about near-term maturities. CEO Micah Anderson expressed his enthusiasm and gratitude. He stated, “This strategic restructuring marks a pivotal chapter for LEEF. By settling a portion of our debt for equity and extending the maturity of the balance, we are not only enhancing our financial stability but also positioning the company for robust growth and scaling.” LEEF also announced its intention to close a US$1,000,000 common share equity round. CFO Kevin Wilson commented, “In light of the recent potential for cannabis rescheduling, we’ve initiated a targeted equity round to bolster LEEF’s expansion efforts. We see substantial value at our current valuation and are eager to leverage this momentum.” The new capital will help advance strategic initiatives, including the first harvest from its farm called Salisbury Canyon Ranch and other expansion opportunities.
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