Unrivaled Brands Enters Into Binding Debt Settlement Term Sheet Reducing Debt by $3.25M

Rhea-AI Summary

Unrivaled Brands (OTCQB: UNRV) has announced a binding settlement term sheet to resolve $3,250,000 of debt owed to certain noteholders. Initially, the company issued four promissory notes totaling $4,500,000 in June 2021. The settlement will reduce the total principal and interest obligation to $1,250,000, repayable over 60 months at an interest rate of 10.0% per annum. CEO Sabas Carrillo expressed gratitude towards partners and creditors for their support in restructuring this debt. Further details are available in a Form 8-K filed with the SEC.

Positive

• Reduction of total debt obligation from $3,250,000 to $1,250,000.
• New repayment terms extend over 60 months at a manageable interest rate of 10.0%.

Negative

• None.

SANTA ANA, Calif., March 28, 2023 (GLOBE NEWSWIRE) -- Unrivaled Brands, Inc. (OTCQB: UNRV) (“Unrivaled,” “Unrivaled Brands,” or the “Company”), a cannabis company with operations throughout California, is pleased to announce it has entered into a binding settlement term sheet to settle an aggregate of $3,250,000 of indebtedness to certain noteholders of the Company.

In June 2021, the Company issued four promissory notes in the amount of $4,500,000. The Company and the Noteholders have now agreed to reduce the total amount of principal and interest owed to $1,250,000, payable over 60 months and bearing interest at a rate of 10.0% per annum.

Sabas Carrillo, Unrivaled’s Chief Executive Officer commented, “We want to sincerely thank our partners and creditors for continuing to work with us in restructuring our debt.”

Additional details on the agreement may be found in a Form 8-K filed today with the Securities and Exchange Commission and available on the Company’s website.

About Unrivaled Brands

Unrivaled Brands is a company focused on the cannabis sector with operations in California. Unrivaled Brands operates four dispensaries and direct-to-consumer delivery, a cultivation facility, and several leading company-owned brands. Unrivaled Brands is home to Korova, known for its high potency products across multiple product categories, currently available in California, Oregon, Arizona, and Oklahoma.

For more info, please visit: https://unrivaledbrands.com.

Cautionary Language Concerning Forward-Looking Statements

Certain statements contained in this communication regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These include statements regarding management's intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. The Company uses words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on the Company’s expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors.

New factors emerge from time-to-time and it is not possible for the Company to predict all such factors, nor can the Company assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Risks include the risk that the Company and the sellers may not ever enter into definitive documents contemplated by the term sheet discussed above and, therefore, the Company may not settle the amounts owed to the sellers on the terms described above or at all. These risks, as well as other risks associated with the combination, will be more fully discussed in the Company’s reports with the SEC. Additional risks and uncertainties are identified and discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the SEC. Forward-looking statements included in this release are based on information available to the Company as of the date of this release. The Company undertakes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this release.

Contact:

Jason Assad
LR Advisors LLC.
jassad@unrivaledbrands.com
678-570-6791

FAQ

What is the recent debt settlement announcement by Unrivaled Brands (UNRV)?

Unrivaled Brands has entered a binding settlement term sheet to reduce its debt from $3,250,000 to $1,250,000, with new repayment terms over 60 months at a 10% interest rate.

When did Unrivaled Brands issue its promissory notes?

Unrivaled Brands issued four promissory notes totaling $4,500,000 in June 2021.

How much will Unrivaled Brands pay in total after the debt restructuring?

After the debt restructuring, Unrivaled Brands will pay a total of $1,250,000 over 60 months.