LOS ANGELES, CA / ACCESSWIRE / August 13, 2020 / Cannabis Global, Inc. (OTC PINK: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.
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.
SOURCE: Cannabis Global, Inc.