Cannabis Global Announces Positive Balance Sheet
Recapitalization with Retirement of Convertible Debt
LOS ANGELES, CA -- August 13,
2020 -- InvestorsHub NewsWire -- Cannabis Global, Inc. (OTC:
CBGL) ("Cannabis Global" or the "Company"), a cannabinoid and
hemp extract science-forward company developing infusion and
delivery technologies, is pleased to
announce the
repayment and retirement of multiple convertible notes
along
with other
positive restructuring of the Company's debt obligations. The
Company recently paid off three convertible notes with a total
principal value of $178,500 and has signed a binding agreement with
an institutional investor to finance the payoff of an additional
$63,000 note.
These actions, which prevented
the conversion of debt to equity, are in addition to
corporate actions taken during
May 2020, which canceled convertible notes valued at $133,101 from
the balance sheet as well as the transition of short term
notes valued at $500,000 into a long term, 5-year,
zero-interest note paid in monthly
installments. The Company expects these debt payments and
restructurings to have a significant positive impact on the Company's balance sheet
for the fiscal year ending August 31, 2020, minimize shareholder
dilution risk.
"The funds we raised from
convertible notes earlier this year were used wisely to jump-start
the development of what we believe to be the most robust set of
cannabinoid infusion technologies in the marketplace,"
commented Cannabis Global
CEO,
Arman
Tabatabaei. "As a result, we were able to
file six provisional patents, develop several new technologies,
which we are classifying as trade secrets, and develop multiple new
products based on our IP accomplishments. With the largest component of
these notes paid in full and a definitive agreement in place to
fully pay another note that is coming due, we are well-positioned
not only to continue our R&D programs but also to roll out the
highly innovative products developed based on our internally
developed IP. We have now paid off – without
conversion – three of these notes and have
an agreement in place to pay off the fourth by August 18."
The paid convertible notes and
the note designated for the upcoming payment add up to a principal amount of
$241,500. The notes converted to
restricted common shares during May totaled $133,101.
Thus, since May of
this year, the Company has removed over $374,601 in convertible
debt and has shifted over $500,000 into a long-term, zero-interest
obligation.
Mr. Tabatabaei continued, "We
believe that our recent name-change to Cannabis Global, and
the convertible debt restructuring, will have long-term positive
impacts relative to our cost of capital and overall shareholder
value. We
have prevented considerable dilution through these actions, while also
shifting a large short-term obligation into a
five-year, zero-interest obligation.
Cannabis Global is
well-positioned to continue our groundbreaking research with new
infusions for rare cannabinoids such as tetrahydrocannabivarin
(THC-V) and cannabinol (CBN), THC-V
beverage products, and the powderization
of water soluble
cannabinoids, all while continuing to introduce consumer
products
based on
these developments."
About Cannabis
Global, Inc.
Cannabis Global, Inc.,
formerly known as MCTC Holdings, Inc., is a fully audited and
reporting Company with the U.S. Securities & Exchange
Commission, trading with the stock symbol CBGL. The Company is an
emerging force in the area of cannabinoid sciences and highly
bioavailable hemp and cannabis infusion technologies. The Company
does not engage in the production, distribution, or sales of any
controlled substances, including marijuana. The Company has an
actively growing portfolio of intellectual property having filed
six patents in the areas of cannabinoid delivery systems and
cannabinoid polymeric nanoparticles. The Company markets its
consumer products under the Hemp You Can Feel™ brand name. Cannabis
Global launched its Project Varin early in 2020, to develop new
delivery methods for rare cannabinoid Tetrahydrocannabivarin
(THV-C) and to develop products based on this
cannabinoid.
About
Provisional Patent Filings
Under United States patent
law, a provisional application is a legal document filed in the
United States Patent and Trademark Office, that establishes an
early filing date, but does not mature into an issued patent unless
the applicant files a regular non-provisional patent application
within one year.
Forward-looking
Statements
This news release contains
"forward-looking statements" which are not purely historical and
may include any statements regarding beliefs, plans,
expectations
or intentions
regarding the future. Such forward-looking statements include,
among other things, the development, costs and results of new
business opportunities and words such as "anticipate", "seek",
intend", "believe", "estimate", "expect", "project", "plan", or
similar phrases may be deemed "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, the inherent uncertainties associated with
new projects, the future U.S. and global economies, the impact of
competition, and the Company's reliance on existing regulations
regarding the use and development of cannabis-based products. These
forward-looking statements are made as of the date of this news
release, and we assume no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
Although we believe that any beliefs, plans, expectations
and intentions
contained in this press release are reasonable, there can be no
assurance that any such beliefs, plans, expectations or intentions
will prove to be accurate. Investors should consult all of the
information set forth herein and should also refer to the risk
factors disclosure outlined in our annual report on Form 10-k, our
quarterly reports on Form 10-Q and other periodic reports filed
from time-to-time with the Securities and Exchange Commission. For
more information, please visit www.sec.gov.
For more
information, please contact:
Arman
Tabatabaei
IR@cannabisglobalinc.com
+1-(310)-986-4929
Public Relations:
Tiger Global
Management
info@TigerGMP.com
www.TigerGMP.com
SOURCE Cannabis Global,
Inc.