Cansortium Redeems US$5 Million of Convertible Notes

Rhea-AI Summary

Cansortium Inc. (OTCQB: CNTMF) has redeemed up to US$5 million of its convertible promissory notes, reducing the total outstanding amount to US$5 million. These notes were initially issued for a total of US$10 million in February 2019. The remaining notes are due on December 1, 2022, unless converted at a price of US$0.60 per share. CEO Robert Beasley noted that this move represents an improvement in the company's balance sheet and its ongoing partnership with noteholders as Cansortium expands its operations in Florida and other markets.

Positive

• Reduction of outstanding convertible notes from US$10 million to US$5 million enhances balance sheet strength.
• US$5 million redemption indicates proactive financial management.

Negative

• Remaining notes mature on December 1, 2022, posing potential liquidity concerns if not converted.

MIAMI, FL, May 7, 2021 /PRNewswire/ - Cansortium Inc. ("Cansortium" or the "Company") (CSE: TIUM.U), (OTCQB: CNTMF), a vertically-integrated cannabis company operating under the Fluent™ brand, today announced that it has exercised its right to redeem up to the maximum of US$5 million of the convertible promissory notes (the "Notes") that were initially issued in the aggregate principal amount of US$10 million in February 2019 (as amended in August 2020 and February 2021).  As a result of this redemption, the aggregate principal amount that remains outstanding on the Notes is US$5 million.  The remaining Notes mature on December 1, 2022 if not earlier converted at the conversion price of US$0.60 per share.

"The reduction of this debt is continued improvement of our balance sheet, and we look forward to the our partnership with these noteholders as we grow the Company" said Cansortium CEO Robert Beasley. 

About Cansortium Inc.
Headquartered in Miami, Florida, and operating under the Fluent™ brand, Cansortium is focused on being the highest quality cannabis company in the State of Florida driven by an unrelenting commitment to operational excellence from seed to sale. Cansortium has developed strong proficiencies in each of cultivation, processing, retail, and distribution activities, resulting in successfully operating in the highly regulated cannabis industry. In addition to Florida, Cansortium seeks to create significant shareholder value in the attractive markets of Texas, Michigan, and Pennsylvania, where the Company has secured licenses and established operations.

Cansortium Inc.'s common shares trade on the CSE under the symbol "TIUM.U" and on the OTCQB Venture Market under the symbol (OTCQB: CNTMF). Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcmarkets.com.

Forward-Looking Information
Certain information in this news release may constitute forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates, and projections regarding future events.

Forward-looking information is necessarily based on many opinions, assumptions, and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the public documents of the Company available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

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SOURCE Cansortium Inc

FAQ

What is the significance of Cansortium's recent redemption of convertible notes?

Cansortium has redeemed US$5 million of its convertible promissory notes, improving its financial standing by reducing outstanding debt.

How much of the convertible notes issued by Cansortium still remain outstanding?

After the redemption, Cansortium has US$5 million of convertible notes still outstanding.

When do the remaining convertible notes from Cansortium mature?

The remaining convertible notes mature on December 1, 2022.

What is the conversion price for Cansortium's remaining convertible notes?

The conversion price for the remaining convertible notes is US$0.60 per share.

How does Cansortium's debt reduction potentially affect its stock performance?

Reducing debt can improve investor confidence and could positively impact the stock performance of Cansortium (OTCQB: CNTMF).