Vancouver, British Columbia--(Newsfile Corp. - January 3, 2020) - TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) ("TransCanna" or the "Company")is pleased to announce that its subsidiary, Dalvi, LLC ("Dalvi"), has entered into an amendment agreement with Cool Swang, LLC ("Cool Swang") to further extend the maturity date for the promissory note issued by Dalvi in favour of Cool Swang to April of 2022. The promissory note evidences a loan in the principal amount of US$6,750,000, which was advanced by Cool Swang, as seller, to fund a portion of the purchase price for the Company's Daly facility in Modesto, California, which was acquired by Dalvi in April 2019. The maturity date of the promissory note had been previously extended to April 2020 as announced on October 17, 2019, and the current amendment therefore extends the maturity date by an additional two years. Under the terms of the agreement, Dalvi agreed to pay an extension fee of US$135,000 to Cool Swang on January 15, 2020, and the interest rate will increase from 7% to 12% effective January 1, 2020. All or any of the principal amount of the promissory note may be pre-paid at the option of the Company without penalty.
"This debt extension is very positive for TransCanna," commented Steve Giblin, TransCanna's President and CEO. "It reduces our 2020 debt by over 60% and puts our short-term debt in a very manageable position. With our current growth trajectory, we expect to be in a strong cash position as we move through the year. The extended maturity date will also provide us with flexibility with respect to re-financing options on the Daly building."
"We have a good business relationship with TransCanna," commented Chad Swan, one of the principals of Cool Swang. "The TransCanna team in Modesto is committed to working closely with the city, county and state to build a successful organization and make a strong contribution to the community."
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a California based, Canadian listed, company building Cannabis focused brands for the California lifestyle, through its wholly owned California subsidiaries.
For further information, please visit the Company's website at www.transcanna.com or email the Company at info@transcanna.com.
On behalf of the Board of Directors
Steve Giblin
President
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