By Bevcanna Enterprises Inc. on Wednesday, 29 April 2020
Category: Cannabis Infused Products

BevCanna Enterprises settles debt to Naturo Group with shares

The firm owed Naturo Group Investments Inc for a strategic advance which was a debt of C$197,000

"Repaying the strategic advance through equity represents a good opportunity to strengthen our balance sheet and preserve liquidity during these uncertain times," said John Campbell, the finance chief at Bevcanna

BevCanna Enterprises Inc () () said it has strengthened its balance sheet and preserved cash amid these uncertain times by settling a debt with the issue of shares.

The firm owed Naturo Group Investments Inc for a strategic advance, which was a debt of C$197,000, and so issued it with 492,750 shares at a deemed price of C$0.40.

Naturo is controlled by Marcello Leone, Bevcanna's chief executive, chairman and a director.

READ: BevCanna Enterprises secures equity and debenture financing to fuel growth 

"Repaying the strategic advance through equity represents a good opportunity to strengthen our balance sheet and preserve liquidity during these uncertain times," John Campbell, the finance chief at Bevcanna said in a statement.

"We're pleased to have Naturo Group as a continued partner, and their interest in acquiring additional equity is a strong indicator of their long-term confidence in the solid market position we are building in this emerging industry," he added.

The shares acquired by Naturo are subject to certain resale restrictions, including a statutory hold period of four months and one day from closing.

In Wednesday's statement, Bevcanna also announced it had entered into a marketing and investor relations agreement with Aktiencheck.de.

The latter will provide certain corporate branding, marketing, online corporate communications and investor relations services for one month for total cash consideration of €125,000, of which €25,000 was paid upon striking the deal, with the remaining amount payable over the term.

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