Red White & Bloom Brands Inc. (OTCQX:RWBYF) (CSE:RWB) appointed Colby De Zen as president and director of the company effective immediately and Gabriel Bianchi to the board of directors upon completion of regulatory approvals. The company restructured the terms of certain outstanding debentures issued by the company to arm's length lenders in the aggregate principal amounts of $70 million and CA$2.1 million ($1.6 million) and issued a new convertible debenture in the principal amount of CA$17 million.
Restructuring
As a result of the restructuring, the company issued a series of amended and restated secured debentures as follows:
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A secured debenture in the principal amount of $25.9 million. Note 1 matures on September 12, 2024.
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A series of secured debentures, with an aggregate principal amount of $9.5 million. Notes 2A, 2B and 2C mature on September 12, 2024.
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A secured debenture in the principal amount of CA$2.1 million. Note 3 matures on September 12, 2024.
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A secured promissory note in the principal amount of $5.9 million. Note 4 matures on September 12, 2024.
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Two secured promissory notes in the aggregate principal amount of $10.8 million that amend and restate convertible promissory notes previously issued to arm's length lenders by RWB Platinum Vape Inc., a wholly-owned subsidiary of the company, on October 4, 2021. The amended PV notes are convertible into common shares of the company at a price of $0.15 per share, representing a 67% premium to the closing price on September 16.
The company issued a convertible promissory note in the principal amount of CA$17 million to an arm's length lender. All or any part of the outstanding and unpaid principal and interest of the new note is convertible into common shares of the company at a price of CA$0.20 per share, representing a 67% premium to the closing price on September 16. The proceeds from the new note will be used to settle preexisting debt, including principal and interest on outstanding instruments.
RWB Florida LLC issued a new secured debenture in the principal amount of $18, million to an arm's length third party with a maturity date of February 8, 2024. The new note is secured by RWB Florida LLC and specific real estate assets. Proceeds from the RWB FL note, along with cash on hand, were used to retire existing RWB Florida LLC debt in the amount of $20.3 million.
Photo by Giorgio Trovato on Unsplash
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