Loan to increase production capacity by 400% and move the company to a cash flow positive status after the Daly facility opens
TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna“Or the” Company “) is pleased to announce that it has signed a binding term sheet (the” Term Sheet “) with Wild Horse Properties LP (the” Lender “or” Wild Horse “) for a collateralised convertible loan (the” Convertible Loan. ” “) With a total face value of $ 2 million (the” Principal Amount “).
The proceeds of the convertible loan will be used solely to invest in the company’s Daly Facility in Modesto, California (the “Furnishings.“).
“We are pleased to finally free up the production capacity of the Daly plant with this direct investment. We believe that scaling our growing capabilities will accelerate distribution, manufacture and processing on an industrial scale and reward shareholders with significant sales growth. We have been in the planning phase for several months, “said Alan Applonie, general manager of the company,” and we are delighted to have secured the funding necessary to make this vision a reality. “As a reminder to shareholders, Mr. Applonie is from Taylor Farms , an organic producer in the Central Valley, where Alan was part of the original founding management team and was responsible for gross annual sales of over $ 1 billion.
The expansion of the facility consists of four phases; upon receipt of the Company’s Phase One occupancy permit, the Company will relocate its distribution business from the Jerusalem property. The plant in Jerusalem will continue to grow at full capacity.
“With this funding, we will complete construction of our first phase of the facility, which is approximately 80% complete,” said Bob Blink, CEO. “When completed, this will be a significant milestone for the company, one that should increase profits and pave the way for our California expansion. After a lengthy and thorough due diligence process, we are pleased to have found the right partner in Wild Horse for this exciting next phase. “
The convertible loan is valid for a term of 2 years from the date of signing the definitive loan agreement and the associated security agreements (the “Final Contract Date”.“) The interest is to be paid annually in cash from the anniversary of the final contract date. The convertible loan has a term of two years from the final agreement date (the “Maturity Date”) at which time the Company will repay the principal plus any accrued but unpaid interest in cash. The company is entitled to draw on the loan at any time and from time to time, provided that the usual conditions precedent are met.
Subject to applicable regulatory approval, the entire outstanding face amount may be converted into common shares of the Company (the “Common Shares”) at a fixed conversion price of $ 0.59 per common share (the “Conversion Price”) at the Lender’s option after the applicable statutory hold period has expired. ), at any time from the final agreement date to the due date.
When and from the first utilization of part of the convertible loan by the company, the lender is entitled to appoint a member to the company’s board of directors.
The proposed transaction is subject to customary closing conditions including regulatory approval and final documentation completion by February 15, 2021.
This press release constitutes neither an offer to sell nor a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States securities law or the securities laws of any state and may not be used in or in the United States offered or sold to US persons unless they are registered under the US securities act and applicable state securities laws or an exemption from such registration is available.
Above TransCanna Holdings Inc.
TransCanna Holdings Inc. is a California-based, publicly traded Canadian company that, through its wholly-owned California subsidiaries, is building cannabis-focused brands for the California lifestyle.
On behalf of the board
Bob Blink, CEO
Hybrid Financial @hybridtcan
Neither the Canadian Securities Exchange nor its regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains certain statements and information that contain forward-looking information within the meaning of applicable Canadian securities laws or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or future performance and reflect expectations or beliefs about future events of the company’s management. In general, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “expects” or variations of such words and phrases or statements that “may”, “could”, “should”, specific actions, events or results “Would” or “occur”. This information and these statements, which are referred to herein as “forward-looking statements”, are not historical facts as of the date of this press release and include, without limitation, statements regarding discussions of future plans, estimates, and projections, as well as statements such as the expectations and intentions of management below in relation to, among other things: the start of operations of the facility; increasing the company’s output; obtaining license permits for the company’s facilities; Expansion and growth of the company’s business; and the Company will complete the definitive arrangements for the Convertible Loan by February 15, 2021 and the availability of the Loan to the Company thereafter.
These forward-looking statements involve numerous risks and uncertainties and actual results could differ materially from those suggested in the forward-looking statements. These assumptions, risks, and uncertainties include, but are not limited to: obtaining required regulatory and license approvals; Market uncertainties related to the COVID-19 pandemic; potentially negative consumer, investor or public perception of the current brand or company of a party; Changes in consumer preferences and product trends; general market trends; political, legal and regulatory uncertainty regarding cannabis products in general; and specific risks associated with negotiating and executing the final arrangements for the convertible loan by February 15, 2021 and thereafter the use and availability of the proceeds from the convertible loan.
The company has made several key assumptions in the forward-looking statements in this press release, including: the company’s ability to operate at the facility; the company’s ability to increase its production; the company’s ability to obtain the necessary license approvals for its facilities; the company’s ability to achieve the anticipated expansion and growth of its business; that the final agreements will be executed and delivered by all parties by February 15, 2021 and thereafter the ability of the company to make the required interest payments under the convertible loan.
While management has attempted to identify important factors that could cause actual results to differ materially from those contained in any forward-looking statements or information, other factors could cause results not to be as expected, estimated or intended . There can be no assurance that these statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements or information. Readers are cautioned that reliance on such information for other purposes may not be appropriate. The company undertakes no obligation to update any forward-looking statements, forward-looking information, or financial prospects incorporated herein by reference except in accordance with applicable securities laws. We are looking for a safe haven.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/73584