Flower One Holdings Inc. (OTCQX: FLOOF) completed an initial debt restructuring, closed on $10 million of a non-brokered convertible debenture offering that could rise to $25 million, and made changes to its Board of Directors and executive management team. The company recently defaulted on payments such as $262,500 due on January 1, 2021 in connection with a loan from RB Loan Portfolio I, LLC and lease payments in the amount of $526,677 due on January 5, 2021 in connection with the company’s lease of the greenhouse facility located at 3950 North Bruce Street in North Las Vegas.
Flower One had also not paid the January lease payment of $248,268 in connection with the lease of its cultivation and production facility at 343 Neeham Road in North Las Vegas, and interest payments due on two other loans (totaling $152,306 and $27,575), all of which were due January 1, 2021.
“Coupled with the Board and Management changes, the combination of the cash infusion, debt conversions, and debt and lease restructurings better positions the company’s Balance Sheet and debt service obligation,” said Interim CFO Richard Groberg. “With these steps, as well as recent cost rationalizations, Flower One has more flexibility to further its evolving cultivation, production, and sales strategies to serve the expanding Nevada market for cannabis consumption.”
Kellen O’Keefe has been appointed from his previous position of Chief Strategy Officer to Flower One’s President and Interim Chief Executive Officer. Ken Villazor stepped down as Flower One’s Chief Executive Officer, President, and Chairman of the Board, positions he has held since January 1, 2018. Salpy Boyajian has been appointed as Executive Vice President, from her previous position of COO of Nevada Operations, and also has been appointed as Chairman of the Board.
“Today marks a transformational moment in Flower One’s history as we welcome prominent, industry-leaders to our Board of Directors as well as further strengthening our management team,” said O’Keefe. “We have taken the first steps towards properly capitalizing the business, restructuring our debt, and better positioning the Company for long-term success. We are excited about the future for cannabis in Nevada and are committed to our promise to deliver exceptional quality cannabis at accessible prices.”
Flower One reached a modification agreement with its secured lender, RB Loan Portfolio II with respect to its existing $30 million term debt and with RB Loan Portfolio 1, LP, for an existing $16.9 million equipment financing. The company extended the maturity date from June 27, 2021, to December 21, 2021, and modified the interest rate to 14%, with 12% paid monthly and 2% paid at maturity, and the addition of an “Exit Fee” of $1 million payable upon payment in full of the Term Loan on the Maturity Date. Certain conditions were placed on the loan modification and the company listed them as follows:
- the requirement that the Company pay certain previously defaulted obligations
- that the Company complete of at least the Initial New Equity and the Subsequent New Equity by March 5, 2021
- a Loan Modification Fee equal to 3% per annum on the outstanding principal of the Term Loan from May 19, 2020 until the “Effective Date” of the Term Loan Modification (January 25, 2021)
- Flower One common shares in an amount equal to US$1,200,000 (with such common shares is subject to a six month lock-up agreement)
- the grant of one-half warrant for each share granted, such warrants being exercisable for three years at a price of C$0.31, and reimbursement of Lender expenses
The company also entered into a Lease Modification Agreement with regard to the Master Lease Agreement dated February 1, 2019, for equipment lease financing of certain equipment at the Bruce St. Facility, pursuant to which the Lessor has agreed to forbear existing events of default and make certain modifications to Master Lease. The company was able to reduce the monthly payments. In connection with the Loan Modification Agreement, the company has issued US$1,200,000 worth of equity units.
Flower One closed on $10 million of a non-brokered Convertible Debenture Offering of up to $25 million “Debenture Units”. The company said expects to close the second tranche of the Offering at or about the end of February 2021. The net proceeds are intended to be used for working capital, previous debt obligations, and general corporate purposes. In connection with the initial closing under the offering, the company issued a total of 12,824 Debenture Units at a price of C$1,000 per Debenture Unit.
New Board Members
New additions to the Board include Mitchell Kahn, Eliza Gairard, and Kellen O’Keefe, effective January 26, 2021. Mr. Kahn, Mrs. Gairard, and Mr. O’Keefe will join the Board in addition to current Directors, Salpy Boyajian and Nitin Kaushal. Nitin Kaushal, who was recently appointed to the board, will serve as the Chair of the Company’s Audit, Risk and Finance Committee. Effective January 26, 2021, Amit Varma, David Wesley, and Ken Villazor have stepped down from the Board.
Charlotte’s Web’s CW Labs Announce New Scientific Collaboration Researching Hemp CBD Efficacy
Harvard Medical School’s Dr. Staci Gruber, Ph.D. is lead investigator BOULDER, Colo., Feb. 24, 2021 /PRNewswire/ – (TSX: CWEB) (OTCQX: CWBHF) Charlotte’s Web Holdings, Inc. (“Charlotte’s Web” or the “Company”), the market leader in hemp CBD wellness products, today announced a long-term scientific collaboration between McLean Hospital, a Harvard Medical School affiliate, and the Company. […]
Harvard Medical School’s Dr. Staci Gruber, Ph.D. is lead investigator
BOULDER, Colo., Feb. 24, 2021 /PRNewswire/ – (TSX: CWEB) (OTCQX: CWBHF) Charlotte’s Web Holdings, Inc. (“Charlotte’s Web” or the “Company”), the market leader in hemp CBD wellness products, today announced a long-term scientific collaboration between McLean Hospital, a Harvard Medical School affiliate, and the Company. Funding and product support are provided by the CW Labs division of Charlotte’s Web Inc.
Two distinct clinical trials will be overseen by lead researcher/investigator Dr. Staci A. Gruber, Ph. D, Associate Professor of Psychiatry at Harvard Medical School and Director of the MIND program at McLean Hospital in Belmont, Mass. These two studies will investigate the efficacy of a custom-formulated, hemp-derived high-CBD product. Clinical trial results are to be published in 2022. Dr. Gruber is also conducting a number of other studies, including a longitudinal observational study of Veterans who use a Charlotte’s Web product.
Dr. Gruber’s Marijuana Investigations for Neuroscientific Discovery (MIND) Program, established in 2014, is the first of its kind, and is dedicated to studying the long-term impact of cannabis and cannabinoids for medical and adult use which utilizes various clinical and cognitive tools as well as multimodal neuroimaging techniques.
We are honored to be working with Dr. Gruber, Harvard Medical School and McLean Hospital on these important clinical trials. Charlotte’s Web remains dedicated to supporting third-party research on hemp CBD investigated by some of the country’s top scientists.
Tim Orr, President of Charlotte’s Web’s CW Labs divison
For More Information About the MIND Program: https://www.drstacigruber.com/
About the MIND Program:
In 2014 Dr. Staci Gruber launched the Marijuana Investigations for Neuroscientific Discovery (MIND) program at Mclean Hospital, a Harvard Medical School affiliate. The MIND program is the first program of its kind designed to clarify the specific effects of medical cannabis use and is designed to support a wide range of study designs that generate ecologically valid, empirically sound data to close the gap between policy and science. MIND utilizes valid, robust research models and supports numerous projects designed to address the impact of medical cannabis on important variables such as cognition, brain structure and function, mood, conventional medication use, quality of life, pain, sleep, and other health-related measures. Through observational longitudinal investigations, survey studies, and clinical trials of custom-formulated cannabinoid products, MIND aims to examine the unique and synergistic effects of cannabis and its constituents to determine the efficacy of cannabinoids for specific conditions and diseases and to clarify the overall impact of cannabinoid-based treatments on physical and mental health. MIND is poised to improve patients’ overall wellbeing by striving to harness the therapeutic potential while minimizing harms of cannabinoid-based treatment.
About Charlotte’s Web and its CW Labs Division
Charlotte’s Web Labs (“CW Labs”) is the research and development division of Charlotte’s Web, advancing science around hemp-derived phytocannabinoids, terpenes and flavonoid compounds. CW Labs is headquartered at the Hauptmann Woodward Research Institute on the campus of the University at Buffalo’s Jacobs School of Medicine and The Center for Integrated Global Biomedical Sciences, and is part of the State University of New York (SUNY) network of 64 national and international research and medical institutions.
About Charlotte’s Web Holdings, Inc.
Charlotte’s Web Holdings, Inc., a Certified B Corporation headquartered in Boulder, Colorado, is the market leader in the production and distribution of innovative hemp-derived cannabidiol (“CBD”) wellness products under a family of brands which includes Charlotte’s Web™, CBD Medic™, CBD Clinic™, and Harmony Hemp. The Company’s premium quality products start with proprietary hemp genetics that are 100-percent American farm grown and manufactured into whole-plant hemp extracts containing a full spectrum of naturally occurring phytocannabinoids including CBD, CBC, CBG, terpenes, flavonoids and other beneficial hemp compounds. Charlotte’s Web product categories include CBD oil tinctures (liquid products), CBD gummies (sleep, stress, inflammation recovery), CBD capsules,CBD topical creams and lotions, as well as CBD pet products for dogs. Charlotte’s Web is the number one CBD brand in the USA and distributed through more than 22,000 retail locations, select distributors and online through the Company’s website at www.CharlottesWeb.com.
Charlotte’s Web was founded by the Stanley Brothers with a mission to unleash the healing powers of botanicals through compassion and science, benefiting the planet and all who live upon it. Charlotte’s Web is a socially and environmentally conscious company and is committed to using business as a force for good and a catalyst for innovation. The Company weighs sound business decisions with consideration for how its efforts affect employees, customers, the environment, and diverse communities. The rate the Company pays for agricultural products reflects a fair and sustainable rate driving higher quality yield, encouraging regenerative farming practices, and supporting U.S. farming communities. Management believes that its socially oriented and environmentally responsible actions have a positive impact on its customers, suppliers, employees, and stakeholders. Charlotte’s Web donates a portion of its pre-tax earnings to charitable organizations.
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Is cbd oil worth it’s price or should I stick to flower?
Tldr- bud or bottle?
So, I have been smoking high quality outdoor/greenhouse CBD/CBG from Beleafer. Now, my problem is, I dont really feel effects anymore, like, I use my cbd flower to mix with normal high potency weed and it works great, I feel less paranoia, thats all well, but as I say, if I smoke cbd alone its really like im doing something for nothing, this could be because I only get ounces from Beleafer as they last me months, but I probably have a tolerance with each strain by the time I finish it.
My issue is this. I need relief badly(psychological and physical issues), and when I used a high quality cbd oil, it helped, at low 5% dosage, but it was a pretty penny.
When I look at the cbd I want to get now its 129€ for 40% or I can get 2x 20% for the same price. They are 10ml bottles.
HOWEVER, I can get an ounce of indoor cbd for a similar slightly less price, only issue is shipping times, AND – IS SHIPPING OF CBD FLOWER STILL POSSIBLE OR TOTALLY STOPPED? This is probably my only issue now thinking about it.
I digress, basically I can get good strong cbd to smoke for months, or I can get a bottle of oil that could last a month depending if it works and if I stick to dosages instead of just start doing drops all day.
I enjoy cbd and it does work, I just dont know if I have a high tolerance now and it means I have to only fork out on high potency stuff.
Oh, the point of this post is that with smoking cbd, I cant say I feel any health benefits like pain relief etc, however when I used oil I think it definitely helped in more ways than just one (relaxed after a bong)
What would you do in this case? Bud or bottle?
Oh im in France so this makes it difficult with certain brands that dont ship intl.
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