CLS Holdings Restructures Debt, Strengthening Balance Sheet
BOULDER, CO / ACCESSWIRE / April 5, 2017 / CLS Holdings USA, Inc. (OTCQB: CLSH) or the "Company", a diversified cannabis company, is pleased to announce that the Company has retired certain debt on the balance sheet.
Balance Sheet Debt Retirement:
CLS Holdings USA has successfully retired its "Note" with Old Main Capital for $372,670 which occurred on April 3, 2017. The note had a conversion feature allowing for the issuance of common stock in lieu of making cash payments. With the debt retired, no further shares will be issued under this now retired Note. In addition, the Company has a $4 million credit facility available to them to facilitate operations and growth.
As it relates to the credit facility, approximately $200,000 of Debt was issued as a commitment fee to the lender and this note has been extended to July 1, 2017. This Note has no ability to convert before then; therefore, the holder may not sell equity and as such dilute the company or its shareholders. The Company is expected to retire this Note in the coming months, again strengthening the balance sheet and not allowing for dilution to existing shareholders of whom insiders represent approximately 71.4% of the 21.5 million shares issued and 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 business model includes licensing operations, testing facilities, processing revenue, processing facilities, sale of products, brand creation and consulting services.
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 April 5, 2017