Leviathan Cannabis Secures $5 Million in Debt Financing Toronto, Ontario--(Newsfile Corp. - October 31, 2019) - Leviathan Cannabis Group Inc.(CSE: EPIC) (the "Company" or "Leviathan") announces that it has secured a $5,000,000 debt facility with a major shareholder.
The Company will primarily use the funding to advance its operations in Tennessee and Colombia focused on the development of hemp cannabidiol ("CBD") products.
The loan will have a maturity date of 15 October 2021 with the outstanding portion of the principal amount bearing interest at a rate of ten percent (10%) per annum from the date of each advance, payable three times per year: 30 April, 31 August and 31 December. Leviathan may, at its discretion, repay the balance of principal and/or interest owing at any time without penalty.
"This non-dilutive financing strengthens Leviathan's balance sheet at an attractive cost of capital," states Martin J. Doane, CEO of Leviathan. "Importantly, it will allow us to continue to pursue our aggressive growth strategy and move towards creating reliable revenue streams for the Company."
Cancellation of Stock Options
The Company also announces that it has cancelled an aggregate of 1,359,360 stock options (the "Cancelled Options") granted to certain officers and directors of the Company on June 19, 2018 and expiring on June 19, 2021, exercisable at $2.00 per share. The Cancelled Options were voluntarily surrendered by the holders thereof for no consideration.