Accretive Restructuring of Chalice Farms Debt Obligations Announced by Golden Leaf Holdings
TORONTO, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Golden Leaf Holdings Ltd. (CSE:GLH) (OTCQB:GLDFF) (“Golden Leaf” “GLH”, or the “Company”), a premier, consumer-driven cannabis company specializing in production, processing, wholesale, distribution and retail, announces it has reached an agreement with the founders of Chalice LLC (“Chalice”) to favorably restructure and further extend the US$9,527,350 earn-out payment due on May 2, 2022 to Chalice LLC (“Chalice”) and its members. This obligation related to the acquisition of certain assets and a subsidiary of Chalice on July 7, 2017 (the ”Deferred Payment”).
Prior terms were: on maturity, 6% note comprised of US$5,000,000 payable in cash and US$4,527,350 payable in GLH stock at the 30-day VWAP at the time of any share related payment.
Revised Debt Terms:
“The Chalice Farms retail experience is second to none,” noted William Simpson, former CEO of Golden Leaf and founder of Chalice Farms. “We continue to be impressed with the work the management team has done over the past 15 months since our transition and the discipline and cost controls that have allowed the Company to turn the corner. This restructuring further cleans up GLH’s balance sheet. We also wanted to signal that we are long term investors in the Company, which is why we agreed to place any shares we receive into escrow, and time release them over 60 months.”
Golden Leaf Holdings is a premiere consumer-driven cannabis company specializing in production, processing, wholesale, distribution and retail, with 7 dispensaries in Portland, Oregon. The company is committed to developing a dynamic portfolio built around the recognized brands of Chalice Farms, with a focus on health and wellness. Markets served include Oregon, California, Nevada and Washington. Visit glhmonthly.com for regular updates.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
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