(TheNewswire)
February 23, 2023 – TheNewswire - Molecule Holdings Inc. (CSE:MLCL) (“ Molecule ” or the“ Company ”), a Canadian craft-focused cannabis beverage productioncompany, today announces that it has entered into an amendingagreement (the “ AmendingAgreement ”) with certain holders of 8% securedconvertible debentures issued on March 18, 2021 and that matured onSeptember 18, 2022 (the “ Debentures ”), to amend certain terms of theDebentures.
Following the repayment of $250,000 in principal amountof the Debentures in May 2022, $750,000 in principal amount remainedoutstanding under the Debentures (the “ Outstanding Principal Amount ”). Pursuant to the terms of the Amending Agreement, theCompany and the holders of $500,000 of the Outstanding PrincipalAmount (the “ AmendingDebentureholders ”) haveagreed to the following amendments to the Amending Debentureholders’Debentures:
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to extend thematurity date of the Amending Debentureholders’ to September 18,2023 (the “ New Maturity Date ”);
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to increase theinterest rate of the Debentures to 12%, to take effect retroactivelyfrom September 18, 2022 until the earlier of (a) the New MaturityDate; and (b) the date on which all of the indebtedness under theDebentures is converted into common shares in the capital of the Corporation;
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to provide aone-time penalty payment to 15% of the face value of the AmendingDebentureholders’ principal amount, payable on the date of theAmending Agreement; and
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to adjust theprincipal amount of the Amending Debentureholders’ Debentures toaccount for an interest overpayment remitted by the Company andinterest payments owed by the Company to the AmendingDebentureholders.
The holders (the “ Default Holders ”)of $250,000 of the Outstanding Principal Amount(the “ Default PrincipalAmount ”) have not agreed to the above termsand their Debentures remain in default as a result of their maturityon September 18, 2022. The Company intends to repay the DefaultPrincipal Amount under the Debentures or come to a solution with theDefault Holders. However, at present, there can be no assurance as towhat, if any, alternatives might be pursued by the Company. There canalso be no assurance that the Company will reach any solution with theDefault Holders, or as to the terms of any such solution, if achieved.
Company Update
Molecule is pleased to announce that it has introduced2 new products, under the brand name - DULCES. These new products,DULCES Cherry Shockwave and DULCES Sweet Peach are about to bereleased on the OCS website. The DULCES brand is an exciting newaddition to our family of products. It will be available in stores inthe coming weeks. These two products are in addition to the 14 otherMolecule products that are available across the PHRESH, PRESH STRAINS,Klon, and embody brands.
Molecule also announces an update to the Company’soperations. As of February 20, the Company has significantly reducedits workforce by implementing temporary layoffs in order to furtherpreserve cash as a result of ongoing market and business conditions.The Company has ensured adequate resources areavailable in the Company’s operations to ensure that deliveries ofproduct can continue to be made.
The Company continues to seek financing opportunitiesto fund future operations. The Company will provide future updates tothe market as necessary.
For further information, pleasecontact:
André Audet, Chairman and Co-Founder
Phone: 1 (888) 665-2853 x101
Email: andre@molecule.ca www.molecule.ca
About MoleculeHoldings Inc.
Molecule is alicensed producer dedicated to creating cannabis-infused beverages forthe Canadian market. We produce leading, top-quality drinks to provideopportunity and choice to people seeking a convenient and social wayto consume cannabis. Molecule is focused on growing both ourportfolio, and the overall cannabis beverage market. We want to ensurepeople have the best opportunity to find exactly the product andexperience they thirst for.
Neither the CSEnor its regulation services provider accepts responsibility for theadequacy or accuracy of this press release.
Cautionary Note
This press release containsstatements that constitute “forward-looking information”(“forward-looking information”) within the meaning of theapplicable Canadian securities legislation. All statements, other thanstatements of historical fact, are forward-looking information and arebased on expectations, estimates and projections as at the date ofthis news release. Any statement that discusses predictions,expectations, beliefs, plans, projections, objectives, assumptions,future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”,“anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”,“believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may”or “could”, “would”, “might” or “will” be taken tooccur or be achieved) are not statements of historical fact and may beforward-looking information. Forward-looking information in thispress release includes statements related to the Amending Agreement,the obligations set out therein, and related approval of the CSE; theDefault Principal Amount, including the ability to repay or come to asolution with the Default Holders; the ability to obtain financing;and the Company’s ability to produce cannabis-infused beverages forthe Canadian beverage market to provide opportunities for people toconsume cannabis. In disclosing the forward-looking informationcontained in this press release, the Company has made certainassumptions.
The Company's actual results coulddiffer materially from those anticipated in this forward-lookinginformation as a result of regulatory decisions, competitive factorsin the industries in which the Company operates, prevailing economicconditions, and other factors, many of which are beyond the control ofthe Company. For a complete list of the risk factors identified by theCompany, please refer to the Company’s current management’sdiscussion and analysis, which has been filed on the Company’s SEDARpage and can be accessed at www.sedar.com . TheCompany believes that the expectations reflected in theforward-looking information are reasonable, but no assurance can begiven that these expectationswill prove to be correct and such forward-looking information shouldnot be unduly relied upon. Any forward-looking information containedin this news release represents the Company's expectations as of thedate hereof and is subject to change after such date. The Companydisclaims any intention or obligation to update or revise anyforward-looking information whether as a result of new information,future events or otherwise, except as required by applicablesecurities legislation.
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