Red White & Bloom Eliminates $10.5M Of Debt

Red White & Blooms Brands, Inc. RWBYF RWB announced that its board of directors has approved the settlement of $10.475 million in debt related to arm’s length financing through the issuance of common shares at a price of $0.47 per share, representing a premium of 370% to the company’s closing price per share on December 20, 2022.

“We continue to strengthen our balance sheet and eliminate debt at favorable terms for the company,” stated Colby De Zen, president and director of RWB, adding, “As evidenced by the tremendous progress already made this year on restructuring our balance sheet and expanding margin and the reach for our branded products, we are committed to growing our business, achieving our profitability goals, and building shareholder value.”

Pursuant to the debt settlement, the company issued 22.44 million common shares of the company representing a per share price of approximately $0.47 per share to creditors of the company. The company agreed to satisfy this outstanding indebtedness with shares in accordance with the terms of the indebtedness.

All securities issued will be subject to a statutory hold period which will expire on the date that is four months and one day from the date of issuance for Canadian holders as well as any US restrictions, as applicable, for US holders.

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Photo by Esteban Lopez on Unsplash

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