Tauriga Sciences Inc. Secures $135,000 in Inventory Factoring Capital to Support its Accelerating Revenue Growth

Rhea-AI Summary

Tauriga Sciences (OTCQB: TAUG) has secured $135,000 in Inventory Factoring Capital to support revenue growth and a national product launch. This amount is structured as a non-convertible promissory note with a 10% annual interest rate, and a 6-month grace period before the repayment begins in April 2021. Repayment will occur in 7 equal monthly installments of $21,214.29. Moody Capital acted as the Placement Agent for this transaction, which underlines Tauriga's strategy to bolster its operations while diversifying its product offerings in the life sciences sector.

Positive

• Secured $135,000 in Inventory Factoring Capital to support revenue growth.
• Structured as a non-convertible promissory note with favorable repayment terms.

Negative

• Interest-bearing loan may impact future cash flow due to monthly repayments.

This $135,000 Was Structured as a Non-Convertible Promissory Note, With 6-Month Grace Period, to be Repaid in 7 Equal Monthly Installments (April 5, 2021 thru October 5, 2021)   

NEW YORK, NY, Oct. 06, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- Tauriga Sciences, Inc. (OTCQB: TAUG) (“Tauriga” or the “Company”), a revenue generating, diversified life sciences company, with a proprietary line of functional “supplement” chewing gums (Flavors: Pomegranate, Blood Orange, Peach-Lemon, Pear Bellini, Mint, Black Currant) as well as two ongoing Biotechnology initiatives, today announced that it secured $135,000 in Inventory Factoring Capital (“Factoring), with an institutional investor, to support both its accelerating revenue growth and ongoing national product launch.  This $135,000 in Factoring capital was structured as a non-convertible promissory note (interest bearing: 10.00% per annum), with a built in 6-month grace period.  Repayment of this loan, contractually, will occur in 7 equal monthly payments of $21,214.29 (Repayment Period: April 5, 2021 thru October 5, 2021).

The Broker Dealer, Moody Capital, acted as the Placement Agent for this transaction.

ABOUT TAURIGA SCIENCES INC.

Tauriga Sciences, Inc. (TAUG) is a revenue generating, diversified life sciences company, engaged in several major business activities and initiatives.  The company manufactures and distributes several proprietary retail products and product lines, mainly focused on the Cannabidiol (“CBD”) and Cannabigerol (“CBG”) Edibles market segment.  The main product line, branded as Tauri-Gum™, consists of a proprietary supplement chewing gum that is both Kosher certified and Vegan formulated (CBD Infused Tauri-Gum™ Flavors: Mint, Blood Orange, Pomegranate) & (CBG Infused Tauri-Gum™ Flavor: Peach-Lemon).  The Company’s commercialization strategy consists of a broad array of retail customers, distributors, and a fast-growing E-Commerce business segment (E-Commerce website: www.taurigum.com). Please visit our corporate website, for additional information, as well as inquiries, at http://www.tauriga.com

Complementary to the Company’s retail business, are its two ongoing biotechnology initiatives.  The first one relates to the development of a Pharmaceutical grade version of Tauri-Gum™, for nausea regulation (specifically designed to help patients that are subjected to ongoing chemotherapy treatment).  On March 18, 2020, the Company announced that it filed a provisional U.S. patent application covering its pharmaceutical grade version of Tauri-Gum™.  The Patent, filed with the U.S.P.T.O. is Titled “MEDICATED CBD COMPOSITIONS, METHODS OF MANUFACTURING, AND METHODS OF TREATMENT”. The second one relates to a collaboration agreement with Aegea Biotechnologies Inc. for the co-development of a rapid, multiplexed, Novel Coronavirus (COVID-19) test with superior sensitivity and selectivity.   

The Company is headquartered in New York City and operates a regional office in Barcelona, Spain.  In addition, the Company operates a full time E-Commerce fulfillment center located in LaGrangeville, New York.

DISCLAIMER -- Forward-Looking Statements

This press release contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 which represent management’s beliefs and assumptions concerning future events. These forward-looking statements are often indicated by using words such as “may,” “will,” “expects,” “anticipates,” believes, “hopes,” “believes,” or plans, and may include statements regarding corporate objectives as well as the attainment of certain corporate goals and milestones. Forward-looking statements are based on present circumstances and on management’s present beliefs with respect to events that have not occurred, that may not occur, or that may occur with different consequences or timing than those now assumed or anticipated. Actual results may differ materially from those expressed in  forward looking statements due to known and unknown risks and uncertainties, such as are not guarantees of general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to consummate successful acquisition and licensing transactions, fluctuations in exchange rates, and other factors over which Tauriga has little or no control. Many of these risks and uncertainties are discussed in greater detail in the “Risk Factors” section of Tauriga’s Form 10-K and other filings made from time to time with the Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release, and Tauriga assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. You should not place undue reliance on these forward-looking statements.

CONTACT:

Tauriga Sciences, Inc.

555 Madison Avenue, 5th Floor

New York, NY  10022

Chief Executive Officer

Mr. Seth M. Shaw

Email: sshaw@tauriga.com

cell # (917) 796 9926

Instagram: @taurigum

Twitter: @SethMShaw

Corp. Website:   www.tauriga.com

E-Commerce Website:  www.taurigum.com

FAQ

What is the amount secured by Tauriga Sciences in Inventory Factoring?

Tauriga Sciences secured $135,000 in Inventory Factoring Capital.

What are the repayment terms for the $135,000 loan secured by TAUG?

The loan is structured with a 6-month grace period and will be repaid in 7 equal monthly installments of $21,214.29 starting from April 2021.

What is the annual interest rate on the promissory note for TAUG?

The annual interest rate on the promissory note is 10%.

Who acted as the Placement Agent for Tauriga Sciences' transaction?

Moody Capital acted as the Placement Agent for the transaction.