ICNAF - Icanic Brands Restructures Debt
Icanic Brands Company, Inc. (OTCQB: ICNAF) has entered into a Restructuring Support Agreement with certain holders of its 2019 Secured Convertible Debentures for a proposed recapitalization transaction and to announce financing of approximately $2.0 million arranged by insiders of the company. The move will decrease the Icanic’s debt from $14.5 million to $10.9 million and save $110,000 in interest annually.
The Recapitalization Transaction is the next step in the combination and integration of the Icanic and LEEF organizations following the closing of the merger of the companies on April 21, 2022. The Recapitalization Transaction will reduce the company’s outstanding indebtedness and debt service costs, improve its overall capital structure and result in an enhanced financial foundation for the company to allow it to move forward and execute upon its business plan.
“After an extensive review process, consultation with our financial and legal advisors and careful consideration of our available options, the Board has unanimously approved the proposed Recapitalization Transaction,” said Icanic CEO Brandon Kou. “We believe that the Recapitalization Transaction allows Icanic to move forward with a stronger capital structure and we are excited to execute on our short and long term business plan which we believe will create significant value for our stakeholders.”
Micah Anderson, CEO of LEEF said, “The decline in the overall public equity cannabis markets, coupled with the extraordinary market conditions brought on by the pandemic and the delay we experienced in closing the Icanic transaction have resulted in some liquidity constraints for the company. The Recapitalization Transaction effectively allows our 2019 debenture holders to extend the term of their debenture on better terms with mechanisms in place that allow for significant upside as we continue to build our business. The objective of the company is to reduce its outstanding indebtedness and its annual interest costs, improve the company’s overall capital structure, and most importantly, provide a stable financial foundation for the company to capitalize on the opportunities we have in front of us, which I believe to be very meaningful. The Recapitalization Transaction achieves all of these objectives and I look forward to its completion.”