LOS ANGELES, CA, Dec. 08, 2022 (GLOBE NEWSWIRE) -- Cannabis Global, Inc. (OTC: CBGL), Cannabis Global, Inc., a licensed Los Angeles-based manufacturer and distributor in the cannabis sector, today announces the successful conclusion of debt settlement negotiations with two debtholders resulting in the elimination of approximately $813,000 of long term debt from the Company’s balance sheet.
Mr. Edward Manolos, Chairman, and CEO of Cannabis Global, commented, “While our revenues have been growing strongly and consistently over the past few quarters as our product and distribution businesses exceed our expectations, we have been held back relative to reducing our cost of capital due to the relatively high levels of legacy debt carried by the corporation. These debt restructurings and settlements will go a long way to demonstrate to our investors and potential financiers Cannabis Global’s potential in the California cannabis sector and will better position us for what we believe will soon be a true nationwide market for our products and services. These debt reductions will also help to reduce future market dilution and help support a healthier market cap as well as enterprise value as we believe CBGL is greatly undervalued.”
The Company indicated it has entered into additional debt settlement negotiations aimed at further reducing the Company’s debt burden, which it anticipates will be completed early in the Company’s Second Fiscal Quarter.
In total, $813,100 will be removed from the Company’s balance sheet as of November 30, 2022. $110,000 of long-term debt was canceled in exchange for the issuance of $75,000 of Cannabis Global common shares at $.001 per share. In addition, $703,100 of long-term notes were extinguished and exchanged for a management services agreement valued at $25,000 and a transfer of the Northern Lights brand assets owned by the Company’s majority-owned subsidiary, Natural Plant Extract of California.
Details of this debt cancellation and modification agreement will be filed with the U.S. Securities & Exchange Commission of Form 8-K, which can be viewed at www.sec.gov.
About Cannabis Global, Inc.
Cannabis Global, Inc. is a Los Angeles-based, fully audited and reporting Company with the U.S. Securities & Exchange Commission, trading under the stock symbol CBGL. We are an emerging force in the cannabis marketplace with a growing product and proprietary intellectual property portfolio. We are marketing and producing Comply Bag™, an innovative solution for cannabis storage, transport and tracking. Our subsidiary, Natural Plant Extract (NPE), is a Southern California licensed cannabis manufacturer and distributor which licenses our technologies to produce edibles for the cannabis marketplace. Cannabis Global has filed three non-provisional and multiple provisional patents for cannabis infusion and nanoparticle technologies and continues an active research & development program.
Forward-Looking Statements
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
Corporate contact:
Edward Manolos
IR@cannabisglobalinc.com
