Freedom Leaf Announces Closing of a $5 Million Round of Growth Capital
Financing supports the evolution of the Company into a leading CBD Hemp player in North America
DALLAS, Nov. 18, 2019 (GLOBE NEWSWIRE) — Freedom Leaf, Inc. (“Freedom Leaf” or the “Company”) (OTCQB: FRLF), a first in class hemp consumer packaged goods company that recently acquired Green Lotus™ to build its position as a leading provider of natural cannabinoid-rich hemp products, announced today that it closed a $5 million convertible note financing led by an affiliate of Merida Capital. David Goldburg, Chairman of the Board, and Dave Vautrin, Independent Director, invested $125,000 and $67,000, respectively, in the convertible note financing. Proceeds from the financing will primarily support the Company’s production, marketing, and sales efforts as it continues to build its position as a leading CBD and hemp company servicing the North American and Mexican markets.
The financing is in the form of a unit consisting of a three-year senior unsecured note accruing interest at 8%, convertible at the holder’s option into the Company’s common stock at $.20 per share, and a three-year warrant to acquire shares of the Company’s common stock. A portion of the proceeds in the financing represent the cancellation of existing promissory notes held by affiliates of Merida Capital. For additional details, please reference the Form 8-K to be filed with the U.S. Securities and Exchange Commission.
Carlos Frias, CEO and Board Member of Freedom Leaf, commented: “This financing will give the Company the necessary capital to fulfill a robust pipeline of new orders from our distribution partner in Mexico, CBD Life SA; Greenlane Holdings, a leading distributor of cannabis and CBD products in the U.S.; and several other leading regional and national retailers who are increasingly looking to meet consumer demand with today’s highest quality CBD and hemp products.”
David Goldburg, Chairman of the Board of Freedom Leaf, added: “The acquisition of Green Lotus has positioned the Company to become a leading consumer packaged goods CBD and hemp player in North America. The conversion price of the convertible note, which is at a substantial premium to the current market price, reflects the high level of confidence Merida has in the ability of the Company to execute on its business plan.”
Freedom Leaf acquired Green Lotus™ on May 31, 2019, immediately enabling the launch of a more robust product line focused on leading CBD and hemp products, enhanced distribution capabilities and penetration into high-growth emerging markets worldwide.
About Freedom Leaf, Inc.
Freedom Leaf Health is a first-in-class hemp consumer packaged goods company with a family of trusted brands that provide premium hemp products for greater wellness, balance and longevity. Green Lotus™ and IrieCBD are the Company’s foremost brands, offering premium hemp products such as topicals, tinctures, vapables, softgels and sparkling beverages. Freedom Leaf Health is a fully reporting and audited publicly-traded company trading under the symbol (FRLF).
About Green Lotus™
Green Lotus™ is a premium hemp brand that provides responsibly produced, natural cannabinoid-rich products to consumers and businesses. The brand is veteran-led and powered by a diverse team dedicated to promoting a world where the restorative power of hemp is accessible to all people. For more information, please visit https://greenlotushemp.com.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Statements in this press release that are not strictly historical are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by phrases such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements herein that describe Freedom Leaf’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. Factors that could cause or contribute to differences include the uncertainty regarding viability and market acceptance of Freedom Leaf’s products and services, changes in relationships with third parties, and other factors described in Freedom Leaf’s most recent periodic filings with the Securities and Exchange Commission.