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TORONTO, July 29, 2019 (GLOBE NEWSWIRE) -- Golden Leaf Holdings Ltd. (“GLH” or the “Company”) (CSE:GLH) (OTCQB:GLDFF), a pioneer cannabis company built around recognized brands for the wellness and recreational markets, announces that it has reached an agreement in principle (the “Extension Agreement”) to extend the due date for the US$9,527,350 earn-out payment due to Chalice LLC (“Chalice”) and its members, related to the acquisition of certain assets and a subsidiary of Chalice on July 7, 2017 (the ‘Earn-Out Payment”). US$4,527,350 of the Earn-Out Payment is payable in GLH stock and the balance of US$5,000,000 is payable by wire transfer of immediately available funds. The value of the shares will be based on the 30 day VWAP at the time of any share related payment.
The Extension Agreement provides for the Earn-Out Payment due date to be extended to May 2, 2022, but is not effective until the holders of the Debentures that mature on November 2, 2019 (the “Debentures”), vote to approve the Extraordinary Resolutions described in the Company’s Press Release on July 23, 2019, including the early conversion of the Debentures, and the Company signs the Extension Agreement. The meeting of the Debentureholders is scheduled for August 21, 2019.
John Varghese, Interim CEO and President of GLH commented, “with the terms of this Extension Agreement agreed to, the Company’s attention is now focused on the meeting of the Debentureholders. If the Debentureholders approve the Extraordinary Resolutions, we believe we will have cleaned up the Company’s balance sheet to an extent that will allow the Company to attract and hire a qualified CEO and greatly enhance the Company’s prospects for success.”
More information can be found in the notice mailed to Debentureholders.
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About Golden Leaf Holdings
Golden Leaf Holdings Ltd. is a Canadian company with operations in multiple jurisdictions including Oregon, Nevada, and Canada, with cultivation, production and retail operations built around recognized brands. Golden Leaf distributes its products through its branded Chalice Farms retail dispensaries, as well as through third-party dispensaries. Golden Leaf’s cannabis retail operations and products are designed with the customer in mind, focused on superlative in-store experience and quality products. Visit www.goldenleafholdings.com to learn more.
Golden Leaf Holdings Ltd.
Renmark Financial Communications
Disclaimer: This press release contains “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Company’s future business operations, the opinions or beliefs of management and future business goals. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These risks include but are not limited to general business, economic and competitive uncertainties, regulatory risks, market risks, risks inherent in manufacturing and retail operations such as unforeseen costs and production shutdowns, difficulties in maintaining brand loyalty, and other risks of the cannabis industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. Forward-looking information is provided herein for the purpose of presenting information about management’s current expectations relating to the future and readers are cautioned that such information may not be appropriate for other purpose. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. This press release does not constitute an offer of securities for sale in the United States, and such securities may not be offered or sold in the United States absent registration or an exemption from registration or an exemption from registration.