CLS Holdings Insiders Convert $2.7 Million of Debt to Equity
Conversions at a Fixed Price of $0.25 per Common Share;
Priced at Double Current Stock Price Reflecting Insider Confidence
BOULDER, CO / ACCESSWIRE / June 7, 2017 / CLS Holdings USA, Inc. (OTCQB: CLSH) (or the "Company"), a diversified cannabis company, is pleased to announce that Chairman and CEO, Jeff Binder, and Board Member, Frank Koretsky, have exchanged $2,704,240 of their Notes into common stock at a fixed price of $0.25 per share. They have also agreed as part of the exchange to cancel all warrants attached to these Notes.
The conversion price represents a substantial premium to the previous days closing price and is a direct reflection of the commitment of insiders to the long-term objective of building a diversified cannabis platform.
Mr. Binder commented, "Since inception, we have invested $4.5 million into the company and we remain committed to building something special for all our stakeholders. We continue to expand our search for partners and venues where we can exploit our proprietary extraction and conversion technology. Additionally, we are exploring acquisition opportunities with a number of exciting cannabis related companies."
"This exchange of notes along with the previously announced repurchase and cancellation of the $325,000 convertible note in April substantially eliminates our corporate debt and simplifies our current capital structure."
As a result of this conversion and exchange, insiders now own approximately 25.8 million shares or 76% of the 34 million shares outstanding.
About CLS Holdings USA, Inc.
CLS Holdings USA, Inc. (OTCQB: CLSH) is a diversified cannabis company, specializing in the extraction and conversion of cannabinoids. CLS stands for "Cannabis Life Sciences," as it maintains a proprietary method of extracting various cannabinoids from the marijuana plant and converting them into higher quality and quantity. CLS Holdings USA's business model includes licensing operations, testing facilities, processing revenue, processing facilities, sale of products, and brand creation and consulting services.
For more information, check out: http://www.clsholdingsinc.com.
Forward-Looking Statements. This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's forward-looking statements, please see the Company's most recent Form 10-K filed as of May 31, 2016, including but not limited to the discussion under "Risk Factors" therein, which the Company has filed with the SEC and which may be viewed at http://www.sec.gov.
Chairman and CEO
Brett Maas, Managing Partner
SOURCE: CLS Holdings USA, Inc.
Released June 7, 2017