Cannabis Global Restructures Significant Portion Of Short Term Debt

Cannabis Global, Inc. CBGL released the details of its recent debt restructuring where shorter-term notes were paid in full via new financing. The new note bears interest at 12% per annum and is convertible into common shares of the company at a later date. Additionally, the note funder was granted rights to purchase shares in the future at a predetermined price via warrants.

"The recent payoff of the shorter duration notes via replacement of notes with longer durations will, for the time being, meaningfully reduce the number of conversions from debt to common shares," stated Arman Tabatabei, CEO of Cannabis Global. "This comes at an opportune time while we are increasing our demands for working capital to fulfill the large increase of orders we are experiencing and as we begin to launch new classes of cannabis products via our recently announced agreement with Caliwanna."

Over the past months, Cannabis Global has experienced a large increase in customer orders and revenues as it announced new products and invested in new marketing channels. Most of these increases are attributable to the sale of cannabis flower to California licensed dispensaries, although orders for such products as edibles and rosin-infused cannabis prerolls have also been robust.

The company is expecting to announce strong growth for the recently closed fiscal quarter ended February 28, 2022 with the ordering trends continuing well into the current the fiscal quarter, which ends May 30, 2022.