Canada-based cannabis multistate operator Red White & Bloom Brands has restructured about 145 million Canadian dollars ($105 million) of issued outstanding debt as part of a larger debt-renewal program.
The transaction is expected to reduce shareholder dilution, lower debt-carrying costs and enable the Toronto-headquartered company to refocus its operations on “profitable growth initiatives,” according to a news release.
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The restructuring:
Eliminated the potential dilution of 198 million common shares, accounting for 42.1% of the issued and outstanding common shares. Extended maturity dates for CA$33 million of restructured debt to November 2026 with the balance of $112 million extended through September 2017. Deferred cash interest and principal payments for the restructured debt until their new maturity dates. Reduced principal by $5 million
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