Forte Group Announces Strategic Initiatives to Strengthen Balance Sheet
Forte Group Holdings (CSE:FGH, OTC:FGHFF) has announced strategic initiatives to strengthen its balance sheet, including refinancing of its subsidiary Naturo Group's second mortgage and conversion of debt into equity. The company refinanced its second mortgage on December 19, 2024, increasing the principal from $1.1M to $1.4M with a 14% annual interest rate for the first year, rising to 23% thereafter.
The company plans to convert $200,000 in secured promissory notes and $100,000 in second mortgage into common shares at $0.48 per share, resulting in 624,999 new shares. Between December 2023 and May 2024, Naturo Group raised $1.38M through promissory notes, of which $397,064.70 has already been converted to shares. With the anticipated closing of the new debt-to-equity conversion on January 17, 2025, total promissory note reductions will reach $597,064.70, leaving approximately $785,000 outstanding.
Forte Group Holdings (CSE:FGH, OTC:FGHFF) ha annunciato iniziative strategiche per rafforzare il proprio bilancio, tra cui il rifinanziamento del secondo mutuo della sua controllata Naturo Group e la conversione del debito in capitale. L'azienda ha rifinanziato il suo secondo mutuo il 19 dicembre 2024, aumentando il capitale da $1,1M a $1,4M con un tasso d'interesse annuo del 14% per il primo anno, che poi aumenterà al 23%.
L'azienda prevede di convertire $200.000 in cambiali garantite e $100.000 in secondo mutuo in azioni ordinarie a $0,48 per azione, generando così 624.999 nuove azioni. Tra dicembre 2023 e maggio 2024, Naturo Group ha raccolto $1,38M attraverso cambiali, di cui $397.064,70 sono già stati convertiti in azioni. Con la chiusura prevista della nuova conversione da debito a capitale il 17 gennaio 2025, le riduzioni totali delle cambiali raggiungeranno $597.064,70, lasciando circa $785.000 in sospeso.
Forte Group Holdings (CSE:FGH, OTC:FGHFF) ha anunciado iniciativas estratégicas para fortalecer su balance, incluyendo el refinanciamiento de la segunda hipoteca de su subsidiaria Naturo Group y la conversión de deudas en capital. La empresa refinanció su segunda hipoteca el 19 de diciembre de 2024, aumentando el principal de $1.1M a $1.4M con una tasa de interés anual del 14% para el primer año, que aumentará al 23% posteriormente.
La empresa planea convertir $200,000 en pagarés garantizados y $100,000 en segunda hipoteca en acciones comunes a $0.48 por acción, lo que resultará en 624,999 nuevas acciones. Entre diciembre de 2023 y mayo de 2024, Naturo Group recaudó $1.38M a través de pagarés, de los cuales $397,064.70 ya se han convertido en acciones. Con el cierre anticipado de la nueva conversión de deuda a capital el 17 de enero de 2025, la reducción total de pagarés alcanzará $597,064.70, dejando aproximadamente $785,000 pendientes.
포르테 그룹 홀딩스 (CSE:FGH, OTC:FGHFF)는 자산 강화를 위한 전략적 이니셔티브를 발표했습니다. 여기에는 자회사인 나투로 그룹의 두 번째 담보대출 재융자와 부채를 자본으로 전환하는 것이 포함됩니다. 이 회사는 2024년 12월 19일 두 번째 담보대출을 재융자하며, 원금을 110만 달러에서 140만 달러로 증가시키고, 첫 해는 14%의 연이율로 이후 23%로 증가합니다.
회사는 200,000달러의 보증된 약속어음과 100,000달러의 두 번째 담보대출을 주당 0.48달러의 일반 주식으로 전환할 계획이며, 이로 인해 624,999주가 발행됩니다. 2023년 12월부터 2024년 5월 사이에 나투로 그룹은 약속어음을 통해 138만 달러를 모금했으며 이중 397,064.70달러가 이미 주식으로 전환되었습니다. 2025년 1월 17일에 새로운 부채-자본 전환이 종료될 것으로 예상되며, 총 약속어음 감소액은 597,064.70달러에 이를 것이며, 약 785,000달러가 미상환 상태로 남게 됩니다.
Forte Group Holdings (CSE:FGH, OTC:FGHFF) a annoncé des initiatives stratégiques pour renforcer son bilan, y compris le refinancement de la seconde hypothèque de sa filiale Naturo Group et la conversion de dettes en capital. L'entreprise a refinancé sa seconde hypothèque le 19 décembre 2024, augmentant le principal de 1,1 million de dollars à 1,4 million de dollars avec un taux d'intérêt annuel de 14 % pour la première année, qui passera ensuite à 23 %.
L'entreprise prévoit de convertir 200 000 dollars de billets à ordre garantis et 100 000 dollars de seconde hypothèque en actions ordinaires à 0,48 dollar par action, ce qui donnera lieu à 624 999 nouvelles actions. Entre décembre 2023 et mai 2024, Naturo Group a levé 1,38 million de dollars par le biais de billets à ordre, dont 397 064,70 dollars ont déjà été convertis en actions. Avec la clôture anticipée de la nouvelle conversion de dettes en capital le 17 janvier 2025, le total des réductions de billets à ordre atteindra 597 064,70 dollars, laissant environ 785 000 dollars à rembourser.
Forte Group Holdings (CSE:FGH, OTC:FGHFF) hat strategische Initiativen angekündigt, um seine Bilanz zu stärken, einschließlich der Refinanzierung der zweiten Hypothek seiner Tochtergesellschaft Naturo Group und der Umwandlung von Schulden in Eigenkapital. Das Unternehmen hat seine zweite Hypothek am 19. Dezember 2024 refinanziert und den Hauptbetrag von 1,1 Millionen Dollar auf 1,4 Millionen Dollar erhöht, mit einem Zinssatz von 14% im ersten Jahr, der danach auf 23% steigt.
Das Unternehmen plant, 200.000 Dollar in besicherten Schuldscheinen und 100.000 Dollar in der zweiten Hypothek in Stammaktien zu einem Preis von 0,48 Dollar pro Aktie umzuwandeln, was zu 624.999 neuen Aktien führen wird. Zwischen Dezember 2023 und Mai 2024 hat Naturo Group 1,38 Millionen Dollar über Schuldscheine gesammelt, von denen bereits 397.064,70 Dollar in Aktien umgewandelt wurden. Mit dem erwarteten Abschluss der neuen Umwandlung von Schulden in Eigenkapital am 17. Januar 2025 wird die Gesamtreduktion der Schuldscheine 597.064,70 Dollar erreichen, wobei etwa 785.000 Dollar ausstehen bleiben.
- Reduction of debt liabilities through conversion of $300,000 into equity
- Successful refinancing of second mortgage with increased principal from $1.1M to $1.4M
- Total reduction of promissory note liabilities by $597,064.70
- High interest rate on refinanced mortgage (14% first year, 23% thereafter)
- Significant outstanding promissory notes remaining ($785,000)
- Share dilution from debt conversion (624,999 new shares)
VANCOUVER, BC / ACCESSWIRE / January 10, 2025 / Forte Group Holdings Inc. (CSE:FGH)(OTC PINK:FGHFF)(FSE:7BC0, WKN:A40L1Z)("Forte Group" or the "Company"), a diversified lifestyle and wellness consumer packaged goods company, announces significant steps to strengthen its balance sheet and financial position, including the refinancing of its wholly-owned subsidiary, Naturo Group Enterprises Inc.'s ("Naturo Group") second mortgage, and the conversion of Naturo Group secured promissory notes and second mortgage into common shares of the Company (each, a "Common Share").
"We are pleased to announce the continued strengthening of our balance sheet through the refinancing of our second mortgage and the conversion of promissory notes and second mortgage into equity. These actions reflect a strong vote of confidence from our stakeholders in the future of Forte Group," said Marcello Leone, CEO of Forte Group. "Over the past year, we have made significant progress in enhancing our financial position by streamlining non-core subsidiaries, reducing liabilities through shares-for-debt arrangements, converting promissory notes into equity, and completing equity financings. We remain committed to further strengthening our balance sheet, achieving a positive working capital position, and fueling the growth of our business. Our focus remains on expanding our TRACE BLACKwater, ALKALINEwater, and nutraceutical supplement offerings across both domestic and international markets."
Second Mortgage Refinancing
On December 19, 2024, the Company's wholly-owned subsidiary, Naturo Group, refinanced its second mortgage secured against its property near Bridesville, British Columbia (the "Second Mortgage"). The Second Mortgage, provided by arm's length lenders, increased the principal amount from
Proposed Conversion of Promissory Notes & Second Mortgage
The Company also announces that it intends to convert an aggregate principal amount of
Between December 8, 2023, and May 1, 2024, Naturo Group closed multiple tranches of secured promissory note offerings (the "Promissory Notes"), raising
Now, with the anticipated closing of the Shares for Debt Arrangement, the Company will reduce its Promissory Note liabilities by an additional
Closing of the Shares for Debt Arrangement is anticipated to be on or about January 17, 2025 in accordance with the policies of the Canadian Securities Exchange.
None of the securities issued pursuant to the Shares for Debt Arrangement have been or will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.
About Forte Group Holdings Inc.
Forte Group Holdings Inc. (CSE:FGH)(OTC PINK:FGHFF)(FSE:7BC0, WKN:A40L1Z ) is a diversified lifestyle and wellness consumer packaged goods company. Forte Group develops and manufactures a range of alkaline and mineral-enriched beverages and nutraceutical supplements for both its TRACE brand and private-label clients. Based in British Columbia, Canada, Forte Group owns a pristine natural alkaline spring water aquifer and operates a 40,000-square-foot, Health Canada and HACCP-certified manufacturing facility near Osoyoos, British Columbia. The Company's distribution network includes traditional retail and e-commerce channels, delivering wellness-focused products directly to consumers through its innovative offerings.
On behalf of the Board of Directors:
John Campbell, Chief Financial Officer and Chief Strategy Officer, Director
john@fortegroup.co
604-569-1414
Disclaimer for Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, but are not limited to, expectations regarding the refinancing of the Second Mortgage, the Shares for Debt Arrangement, the anticipated timing of closing, anticipated liability reductions, the use of proceeds for general working capital and outstanding payables, and the overall financial impact of these initiatives on the Company's operations and balance sheet. Forward-looking statements also include the Company's expectations regarding its ability to strengthen its balance sheet, achieve a positive working capital position, and support the growth of its TRACE BLACKwater, ALKALINEwater, and nutraceutical supplement offerings both domestically and internationally. Forward-looking statements reflect management's beliefs, expectations, and assumptions as of the date of this release and are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to: the Company's ability to successfully execute its financial and operational strategies; market and economic conditions; regulatory compliance and approval processes; potential fluctuations in consumer demand for the Company's products; the ability to generate sufficient revenue to meet financial obligations; risks associated with securing and maintaining third-party financing; changes in interest rates; competition; supply chain disruptions; and other risks outlined in the Company's filings on SEDAR+. The Company makes no assurances that the outcomes expressed or implied in the forward-looking statements will be realized and disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. For more detailed information on these and other risks, please refer to the Company's filings on SEDAR+.
Contact Information
John Campbell
Chief Financial Officer and Chief Strategy Officer, Director
john@fortegroup.co
604-569-1414
SOURCE: Forte Group Holdings Inc.
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FAQ
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