TACOMA, WA / ACCESSWIRE / March 8, 2021 / IONIC BRANDS CORP. (CSE:IONC)(OTC PINK:IONKD)(FRA:IB3A) (“IONIC BRANDS” or the “Company“), a regional manufacturer of innovative cannabis consumables and concentrate extract products, is pleased to announce the closing of the acquisition of the cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe Sciences Ltd.’s (“Lobe”) subsidiary vendor (the “Transaction”). The whole consideration of the Transaction is valued at roughly CAD$32 million payable in money of CAD$1.75 million, issuance of 100,406,701 Series E non-voting most popular shares (every, a “Preferred Share”), 4,000,000 warrants of the Company and a US$50,000 secured promissory be aware, all as described in the Company’s information launch dated February 23, 2021.
The Preferred Shares are exchangeable into one widespread share of the Company (every, a “Common Share”) on a one-for-one foundation (topic to adjustment, and supplied that the holder’s share possession of the Company stays under 10% at the time of conversion) and carries an annual dividend equal to 13% for a interval of two years from the date of issuance, with the Preferred Shares routinely changing to Common Shares 4 years from the issuance date.
In reference to the closing of the Transaction, the Company amended the phrases of the asset buy settlement governing the Transaction. The Company covenanted in favor of Lobe’s subsidiary vendor to transform, inside 60 days following the date hereof, at the least 90% of the principal quantity of the excellent secured convertible debentures of the Company due May 16, 2022 (the “Debentures”), leading to obligations excellent (together with principal and accrued curiosity, if any) of not more than $1,800,000 as of the date of conversion. Furthermore, the Company agreed to sure minority board nomination in favor of Lobe. Furthermore, the firm has entered into consulting agreements with sure managers of Cowlitz County Cannabis to offer advisory providers to our US working firm Blacklist Holdings Inc. for the functions of increasing our newly acquired manufacturers to different US markets. The consideration paid is in the kind of two million warrants priced at a premium to the closing value on March 8th, 2021.
The Company introduced on March 2, 2021 that it had secured the assist of sure holders (the “Supporting Debentureholders”) of the Debentures, representing roughly 80% of the principal quantity of Debentures excellent. The Supporting Debentureholders have agreed to assist the conversion of 91.5% of the excellent principal quantity of Debentures, together with accrued and unpaid curiosity, into Series D Voting Preferred Shares (the “Proposed Conversion”). The Proposed Conversion is topic to the Company acquiring the required approvals underneath the amended and restated indenture between the Company and Odyssey Trust Company dated December 20, 2019, as supplemented. The Proposed Conversion is a major milestone for the Company because it doubtlessly removes roughly CAD$18 million of debt from the Company’s steadiness sheet.
In addition, the Company additionally introduced on March 2, 2021 the closing of its oversubscribed non-brokered personal placement (the “Financing”), elevating gross proceeds of over CAD$14.7 million.
The completion of the Cowlitz County Cannabis transaction now completes the final step of a sequence of important transactions restructuring and recapitalizing IONIC BRANDS, setting the Company to be a serious participant in the Pacific Northwest markets of Washington and Oregon hashish market and the Pacific Northwest of the United States.
Calibre Capital Corp. and affiliate consultants (the “Calibre Group“) acted as monetary advisors to IONIC BRANDS in reference to the sequence of transactions with respect to the acquisition, restructure, and company financings of the Company.
John Gorst, Ionic Brands’ CEO and Chairman commented, “We are beyond words on successfully completing the final step in the series of transformational transactions that will form IONIC BRANDS 2.0. I would like to personally extend my appreciation to the Philip Young, Lobe CEO and Jonathan Gilbert, Lobe Chairman, for making this transaction happen. We welcome their continued involvement on the board and as significant shareholders of IONIC BRANDS. We believe our existing expertise in the Pacific Northwest, markets of Washington and Oregon market, combined with our branding power and strategies will catapult both Cowlitz and Ionic product sales. This transaction has been in the making for over a year and during this time, the Company overcame some serious challenges. I am pleased to say that we are now ahead of this curve, and have come out stronger, with some even stronger partnerships and relationships.”
None of the securities acquired in reference to the Financing can be registered underneath the United States Securities Act of 1933, as amended, and no such securities could also be provided or offered in the United States absent registration or an relevant exemption from the registration necessities. This information launch shall not represent a suggestion to promote or the solicitation of a suggestion to purchase nor shall there be any sale of the securities in any jurisdiction by which such provide, solicitation or sale can be illegal.
About Ionic Brands Corp.
The Company is devoted to constructing a regionally based mostly multi-state consumer-focused hashish focus model portfolio with sturdy roots in the premium and luxurious segments of vape, concentrates and consumables. The cornerstone Brand of the portfolio, IONIC, is a prime concentrates model in Washington State together with its financial system model Dabulous and has aggressively expanded all through the Pacific Northwest of the United States. The model is at the moment working in Washington and Oregon. IONIC BRANDS’ technique is to be the chief of the highest-value segments of the hashish market.
On behalf of IONIC BRANDS CORP.
Chairman & Chief Executive Officer
For extra info go to www.ionicbrands.com or contact:
To keep higher knowledgeable with the present occasions of the firm you’ll be able to be part of our investor neighborhood at https://www.ionicbrands.com/investor-community
The CSE doesn’t settle for duty for the adequacy or accuracy of this launch.
All statements, apart from statements of historic truth, included herein are forward-looking statements that contain varied dangers and uncertainties. There might be no assurance that such statements will show to be correct and precise outcomes and future occasions may differ materially from these anticipated in such statements. The dangers are with out limitations the value for hashish and associated merchandise will stay constant and the shopper demand stays sturdy; availability of financing to the Company to develop the retail places; retention of key staff and administration; modifications in State and/or municipal laws of retail operations and modifications in authorities laws typically. Important components that might trigger precise outcomes to vary materially from the Company’s expectations are disclosed in the Company’s paperwork filed once in a while with the Canadian Securities Exchange, the British Columbia Securities Commission, the Ontario Securities Commission and the Alberta Securities Commission.
SOURCE: IONIC Brands Corp.
View supply model on accesswire.com:
The put up Ionic Brands Announces Closing of the Acquisition of Cowlitz County Cannabis From Lobe Sciences, Completing the Series of Transormational Corporate Transcations appeared first on CannabisFN.