OTTAWA, June 13, 2019 (GLOBE NEWSWIRE) -- Eureka 93 Inc. (“Eureka93”) (CSE: LVWL), one of North America’s largest hemp extraction companies, today announced that on June 12, 2019, its subsidiary Vitality Natural Health LLC (“VNH”) and Surety Land Development LLC (“Surety”) among others, entered into a termination agreement terminating an amended and restated settlement agreement among VNH and Surety, among others. In connection with the termination agreement, Surety agreed to convert existing VNH indebtedness to Surety into an unsecured convertible note in the principal amount of US$18.5 million. This note is convertible by Surety into Eureka93’s common shares at CAD$9.44 per share (the “Surety Note”). The Surety Note accrues interest at 10% per annum (payable monthly) and has a maturity date of March 31, 2021. The US$18.5 million principal is repayable only at maturity date; however, Eureka93 may prepay the Note at any time in whole or in part.
As part of the transaction, Eureka93 will grant Surety warrants to purchase an aggregate of 2,100,000 common shares of Eureka93 at an exercise price of CAD$11.10 per share, expiring March 31, 2021.
“Closing this debt restructuring agreement provides us with more flexibility as we continue to scale our extraction capabilities to meet the growing demand for high-grade CBD isolate,” said David Rendimonti, Chief Executive Officer of Eureka93. “Improving our working capital in the short term allows us to remain focused on top-line growth and deliver continued value to shareholders as we hit corporate and production milestones this year.”
About Eureka93
Eureka93 is one of the largest hemp extraction operations in North America. With facilities in Eureka, Montana, Las Cruces, New Mexico, Ottawa, Ontario, and Windsor, Ontario, the vertically integrated company is dedicated to producing the highest-quality CBD products for its customers. Eureka93 is a design-driven company for creative solutions in systems, products, packages and services.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Forward-looking statements include all disclosures regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Eureka93 cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Often, but not always, forward-looking statements can be identified by the use of words or phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, and may be based on management’s current assumptions and expectations related to all aspects of the Company’s business, industry and the global economy. Further, the Company cautions that this foregoing list of material factors is not exhaustive and additional information identifying risks are detailed from time to time in the Company’s other continuous disclosure filings.
The forward-looking information contained in this press release represents expectations of the Company as of the date of this press release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Eureka 93 Inc. www.eureka93.com
For more information:
Investors
Conrad Seguin
437.226.7002, cseguin@eureka93.com
Media
Sónia Brum
647.338.7381, sbrum@eureka93.com
Company
David Rendimonti, Chief Executive Officer
819.718.2042