Can B Corp. Completes Corporate Debt Restructuring to Position for Uplisting to National Securities Exchange

Rhea-AI Summary

Can B Corp. (OTCQB: CANB) has completed a corporate debt restructuring, raising $1.55 million in new capital and extending $7 million in notes payable to September 1, 2023, and December 31, 2024. This restructuring allows the company to strengthen its balance sheet and advance its business plan across three divisions, including the upcoming installation of hemp processing equipment in Colorado and expansion of its medical device offerings in New York and Michigan. The restructuring involved a sale of $5.7 million in accounts receivable to fund payments to its largest institutional investor. CEO Marco Alfonsi expressed optimism about future growth and plans for uplisting.

Positive

• Raised $1.55 million in new capital through debt restructuring.
• Extended $7 million in notes payable, providing additional time for repayment.
• Plans to deploy new capital in hemp processing and medical device expansion.
• Optimistic outlook for uplisting to a national securities exchange.

Negative

• None.

HICKSVILLE, NY, March 15, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Can B Corp. (OTCQB: CANB) (“Can B” or the “Company”), a health and wellness company specializing in developing, producing, and selling hemp-derived cannabinoid products and durable medical devices, is pleased to announce it has successfully completed a corporate debt restructuring.

Through the restructuring, Can B raised $1.55 million of new capital and extended previously due notes payable totaling $7.0 million to September 1, 2023, and December 31, 2024.  Specifically, three Promissory Notes issued to three funds in early 2022 and three Promissory Notes issued to three private investors in late 2022 were restructured to extend maturity dates to late in 2023 to give the Company an additional window to deploy the capital from the new raise.

The implementation of the business plan across all three operating divisions will allow the Company to get on a more solid footing for future growth and expansion.  Explicitly, some of the new working capital will be used for the installation of existing hemp processing equipment moved in the 4th quarter of 2022 during the consolidation of the Company’s Tennessee and Florida operations into Colorado.  The new equipment should come online early 2nd quarter of 2023 to begin processing hemp biomass which the Company previously acquired and has in storage.  Additionally, the Duramed Division will begin acquiring new medical devices to deploy through its doctor network in New York and Michigan.  The white label division currently in the midst of a national roll-out of the Longevity by Brooke Burke Body needs additional processing capacity and will be receiving new equipment in its Lacy, WA operations.

A key component of the restructuring was the sale of $5.7 million of accounts receivable from Can B’s Duramed Inc. and Duramed MI, LLC divisions to fund payments on two promissory notes for $2.5 million and $1.5 million due to Can B Corp’s largest institutional investor.

Marco Alfonsi, Can B’s Chief Executive Officer, stated, “We are very pleased with the conclusion of our restructuring, which provides an inflow of capital and a major clean-up of our balance sheet. The debt consolidation and extension give us ample runway to uplist to a national securities exchange. We plan on accelerating on that path once we file our 10K for our year ended December 31, 2022, and 10Q for our first quarter ended March 31, 2023.”

Spartan Capital Securities acted as the placement agent for the financing.

About Can B Corp.

Can B Corp. (OTCQB: CANB) is a health & wellness company providing the highest quality hemp-derived cannabinoid products, including under its own brands of Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil, and Duramed. Can B utilizes multi-channel distribution to reach consumers, including medical facilities, doctor offices, retailers, online, and direct. Can B Corp. operate R&D and production facilities in Lacey, WA, and Florida. To learn more about Can B Corp. and our comprehensive line of high-quality products, please visit: Canbiola.com and www.canbcorp.com, follow Can B Corp on Instagram and Facebook or visit one of the 1,000+ retail outlets that carry Can B Corp. products.

For more information about Can B Corp., please visit CanBCorp.com.

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Forward-Looking Statements
Forward-looking statements and risks and uncertainties discussed in this release contain forward-looking statements. The words "anticipate," "believe," "estimate," "may," "intend," "expect," and similar expressions identify such forward-looking statements. Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to risks and uncertainties associated with, among other things, the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance. The matters discussed herein should not be construed in any way, shape, or manner of as a prediction of our future financial condition or stock price. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of latest information, future events, or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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FAQ

What is the significance of Can B Corp's recent debt restructuring?

Can B Corp's debt restructuring is significant as it raised $1.55 million and extended repayment dates for $7 million in notes, providing financial stability.

What will the new capital raised by Can B Corp be used for?

The new capital will be used to install hemp processing equipment and expand medical device offerings.

How much accounts receivable did Can B Corp sell during the restructuring?

Can B Corp sold $5.7 million in accounts receivable as part of the debt restructuring.

What are Can B Corp's plans regarding uplisting?

Can B Corp aims to uplist to a national securities exchange after filing its financial reports.

What is the new repayment deadline for Can B Corp's notes payable?

The repayment deadlines for Can B Corp's notes payable have been extended to September 1, 2023, and December 31, 2024.