Bogota, Colombia–(Newsfile Corp. – March 11, 2021) – Medcolcanna Organics Inc. (NEO: MCCN) (“Medcolcanna“, “MCCN” or the “Company“), a leading Colombian and globally integrated cannabis company, announces a shares for debt transaction whereby the Company has issued an aggregate of 3,837,440 common shares in the capital of the Company (“Common Shares“) with certain trade creditors, employees and members of the Board of Directors in exchange for the forgiveness of a total amount of approximately $456,724.47 worth of debt owed to such creditors. A total of 1,812,764 of the Common Shares were issued at a price of $0.09 per share in exchange for the forgiveness of a total of approximately $163,150 worth of debt owing by the Company to some of its employees and members of the Board of Directors for director fees for Q3 and Q4 2020, such price being the 90 day volume weighted average trading price of the Common Shares on the facilities of the Neo Exchange Inc. leading up to and including March 5, 2021. The balance of the Common Shares issued (2,024,676) are priced at $0.145 per share, the value being settled at the market price of the Common Shares as of March 5, 2021, being the last trading day prior to the date where the valuation of such shares was determined, to certain vendors and suppliers as well as members of the Board of Directors for director fees for Q1 2021. The issuance of the Common Shares allows the Company to settle certain debt owing to various creditors and preserve its working capital for growing the business as it works towards achieving self-sufficiency and being self-financing. The Common Shares are subject to a four month hold under applicable securities laws, such hold expiring on July 11, 2021.
MCCN believes that this demonstrates the trust of the Employees, Consultants and Suppliers of the Company, and their commitment to the future of the Company.
This issuance is considered to be a “related party transaction” pursuant to Multilateral Instrument 61-101 as several of the creditors are related parties to the Company, but the Company is availing itself of the exemptions from obtaining a formal valuation and obtaining “majority of the minority” approval due to the exemptions available in Sections 5.5(a) and 5.7(1)(a) of said instrument.
Medcolcanna is a Canadian integrated medical cannabis company, whose fully licensed operations are based in Colombia. Led by a proven and successful management team, Medcolcanna has facilities in optimal growing locations which positions the Company to become a global leader in the medical cannabis market.
Medcolcanna employs state of the art organic agricultural technology and innovative pharmaceutical processes to produce high-quality products. The Company’s scalable production model and network of pharmaceutical partnerships globally ensures that they remain at the forefront of the medical cannabis industry.
Additional information about Medcolcanna can be found on its web site at medcolcanna.com
Medcolcanna Investor Relations Contact:
Chris Reid, CFO
Carrera 49b # 93-62
Phone: +571 642-9113
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements“) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties; and the delay or failure to receive board, shareholder or regulatory approvals for any proposed transaction, including those discussed herein. There can be no assurance that such statements 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 the forward-looking statements and information contained in this news release.
Medcolcanna assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/76839