International Cannabrands Restructures Preferred Shares Reducing Total Shares Outstanding
Calgary, Alberta (FSCwire) - International Cannabrands Inc. (CSE:JUJU.A) (the “Company”) is pleased to announce that it has reached an agreement for a substantial restructuring of its capital structure with the support of its founding shareholders. The result will be an absolute reduction in the Company’s overall outstanding voting equity securities. Prior to the restructuring but after giving effect to the most recent private placements, there were Common Shares and Preferred Shares representing 288,699,584 voting shares (undiluted). Following the restructuring, the Company will have cancelled Preferred Shares and Common Shares representing a total of 115,766,613 voting shares, a 40% reduction in the outstanding equity on a non-diluted basis. The restructuring is expected to be completed on September 14, 2018.
The Company also intends in short order to grant additional equity based incentives to align, with shareholders, the interests of individuals that are expected to contribute significantly to the future success of the Company.
On a fully diluted shares, the total Common Shares will be reduced from 418,288,472 to 302,521,859, representing a decrease of 27.7%.
Steve Gormley, President and CEO commented: “International Cannabrands’ new direction and vision of acquiring and partnering with emerging brands, distribution companies and profitable manufacturers and retail requires key corporate finance decisions over the coming years. The Board felt that simplifying the capital structure now and reducing the total share float is a critical step in our journey. We recognize that the founders and key preferred shareholders supported this change and we are grateful for their support and confidence in our ambitious vision.”
Scott Reeves, Board Member added: “Since inception, the market struggled with how to interpret the Company’s capital structure. The change will result in the removal of the .A at the end of the Company’s symbol and place the Company on an even footing in competing for capital.”
In connection with the restructuring, Jeffrey Britz has resigned as Chairman of the Board and board member Antonio Ruggieri has been appointed as Interim Chairman of the Board. The Board wishes to thank Mr. Britz for his leadership and dedication in his role as Chairman.
Further to its press release dated August 24, 2018, the Company also wishes to announce the closing of the final tranches of two non-brokered private placements it completed to raise additional gross proceeds of $682,555. The Company issued 7,460,000 units at a price of $0.05 per unit, with each unit consisting of one common share and one share purchase warrant. Each warrant entitles the holder to acquire a common share at a price of $0.10 per share for a period of two years, subject to the ability of the Company to accelerate the expiry date if at any time during the term of the warrants the volume weighted average closing price of the Common Shares on the Canadian Securities Exchange (the “CSE”) is $0.20 or more for 10 consecutive trading days. The Company also issued 4,007,400 units at a price of $0.075 per unit, with each unit consisting of one common share and one share purchase warrant. Each warrant entitles the holder to acquire a common share at a price of $0.15 per share for a period of two years, subject to the ability of the Company to accelerate the expiry date if at any time during the term of the warrants the volume weighted average closing price of the Common Shares on the CSE is $0.30 or more for 10 consecutive trading days. In connection with the private placements, the Company paid fees to eligible parities consisting of $22,500, 750,000 Common Shares and share purchase warrants to purchase 1,140,800 Common Shares at a price of $0.05 for a period of two years. All securities issued bear a four month hold period from the date of issue.
About International Cannabrands (ICI)
ICI acquired the exclusive rights to Julian Marley's JuJu Royal™ brand. ICI currently generates revenue from licensing brands to growers, edible manufacturers, oil extractors, producers of ancillary products and apparel in the United States where cannabis has been legalized at the state level, as well as products containing CBD in the US and internationally. ICI intends on acquiring micro brands with highly profitable operations in the cannabis space. The Company believes as the market becomes saturated with products varying in potency and quality, that the branded products will rise to the top and the Company intends to exploit all opportunities available to realize the full value of the Julian Marley brand and other brands.
About JuJu Royal
Julian Marley conveys his message of legalization, freedom, and love through the JuJu Royal brand, a line of naturally produced medicinal herbs using the best solventless technology. One percent of proceeds are distributed for the benefit of veterans using cannabis through the Weed for Warriors Project. More information about the brand and various products can be obtained at www.jujuroyal.net. International Cannabrands Ltd is continuing to work with Julian Marley to identify and develop future strains of marijuana that meet Julian’s exacting standards. The Company is continuing to conduct research and development with certain origin genetics to produce additional signature Julian Marley strains for the JuJu Royal Premium Marijuana collection. The intent is to make these strains available to dispensaries and caregivers on a worldwide basis where it is legal.
International Cannabrands Contact:
Steve Gormley CFN Media Contact:
Chief Executive Officer Frank Lane (206) 369-7050
1045 Lincoln Street, #106 firstname.lastname@example.org
Denver, Colorado 80203
Ph (323) 828-4321 or email@example.com
Media Inquiries: firstname.lastname@example.org
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR THEIR REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Source: International Cannabrands Inc. (CSE:JUJU.A, OTC Bulletin Board:GEATF)
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