Alkame Restructures Financial Obligation with Largest Debtholder

Rhea-AI Summary

Alkame Holdings, Inc. (OTC PINK:ALKM) has entered a debt restructuring agreement with Blue Citi LLC to convert a $100,000 promissory note with a 12% interest into common shares at $0.01 each. This move aims to strengthen Alkame's balance sheet while the company seeks a revolving credit line to support anticipated co-packing growth. The CEO, Robert Eakle, noted a significant increase in demand and production needs as the company transitions to a new production facility, positioning Alkame for enhanced capacity and capabilities in 2022.

Positive

• Successful restructuring of a $100,000 debt into equity at $0.01 per share.
• Plans to secure a revolving line of credit to support growth.
• Increase in demand indicating potential revenue growth.
• Transition to a new production facility enhances operational capabilities.

Negative

• Dependence on restructuring indicates prior financial difficulties.
• Past challenges in meeting production needs due to facility move.

LAS VEGAS, NV / ACCESSWIRE / September 1, 2021 / Alkame Holdings, Inc. (OTC PINK:ALKM), is pleased to announce that the company has executed a debt restructuring agreement with Blue Citi LLC to restructure a $100,000 in Promissory notes.

Blue Citi LLC has agreed to restructure its $100,000, 12% interest Promissory notes through an immediate conversion of the balance into Alkame Holdings common shares at a fixed price $0.01 per share. This restructure is the first step in strengthening Alkame's balance sheet as the Company negotiates to secure a revolving line of credit to support the company's expected co-packing growth through the end of this year and well into 2022.

"While the first half of the year was challenging as we worked to complete our move to a new production facility during the pandemic, we are already seeing a large uptick in demand and by extension, production needs. Our new facility allows us to move forward as a Company that can respond to customer demand and handle the complexity of the many aspects of our co-packing business. We look forward to adding additional production capacity at our facility to speed up our processes as we ramp up production capacity for an exciting 2022" stated Robert Eakle, CEO of Alkame, "as we indicated, our restructuring efforts are aimed at strengthening both our production capability and our financial capabilities going forward."

About Alkame Holdings, Inc.

Alkame Holdings, Inc. is a publicly traded health and wellness technology holding company, with a focus on patentable, innovative, and eco-friendly consumer products. The Company's wholly owned subsidiaries manufacture products with enhanced water utilizing a proprietary technology to create products with several unique properties. The organization is diligently building a strong foundation through the launch and acquisition of appropriate business assets, and by pursuing multiple applications by placement into several emerging business sectors, such as consumer bottled water and RTD products, household pet products, horticulture and agriculture applications, hand sanitizers, and many other various water-based treatment solutions to both new and existing business platforms.

For more information, visit www.alkameholdingsinc.com.

Alkame Holdings, Inc. Investor Relations

Website: www.alkameholdingsinc.com

Email: info@alkameholdingsinc.com

Disclaimer/Safe Harbor: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that Alkame will achieve significant sales, the failure to meet schedule or performance requirements of the Company's contracts, the Company's liquidity position, the Company's ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.

SOURCE: Alkame Holdings, Inc.

View source version on accesswire.com:
https://www.accesswire.com/662225/Alkame-Restructures-Financial-Obligation-with-Largest-Debtholder

FAQ

What is Alkame Holdings' recent debt restructuring deal?

Alkame Holdings executed a debt restructuring agreement with Blue Citi LLC to convert $100,000 of promissory notes into common shares at $0.01 each.

How will the restructuring impact Alkame's future growth?

The restructuring aims to strengthen Alkame's balance sheet and support expected co-packing growth through securing a revolving line of credit.

What challenges did Alkame face in the first half of the year?

Alkame faced challenges related to moving to a new production facility during the pandemic, affecting production capacity.

What is the significance of Alkame's new production facility?

The new facility allows Alkame to better respond to customer demand and enhance its production capabilities for 2022.