Can B Corp. Completes Corporate Debt Restructuring to Position for Uplisting to National Securities Exchange
HICKSVILLE, NY, March 15, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Can B Corp. (OTCQB:CANB) ("Can B" or the "Company"), a health and wellness company specializing in developing, producing, and selling hemp-derived cannabinoid products and durable medical devices, is pleased to announce it has successfully completed a corporate debt restructuring.
Through the restructuring, Can B raised $1.55 million of new capital and extended previously due notes payable totaling $7.0 million to September 1, 2023, and December 31, 2024. Specifically, three Promissory Notes issued to three funds in early 2022 and three Promissory Notes issued to three private investors in late 2022 were restructured to extend maturity dates to late in 2023 to give the Company an additional window to deploy the capital from the new raise.
The implementation of the business plan across all three operating divisions will allow the Company to get on a more solid footing for future growth and expansion. Explicitly, some of the new working capital will be used for the installation of existing hemp processing equipment moved in the 4th quarter of 2022 during the consolidation of the Company's Tennessee and Florida operations into Colorado. The new equipment should come online early 2nd quarter of 2023 to begin processing hemp biomass which the Company previously acquired and has in storage. Additionally, the Duramed Division will begin acquiring new medical devices to deploy through its doctor network in New York and Michigan. The white label division currently in the midst of a national roll-out of the Longevity by Brooke Burke Body needs additional processing capacity and will be receiving new equipment in its Lacy, WA operations.
A key component of the restructuring was the sale of $5.7 million of accounts receivable from Can B's Duramed Inc. and Duramed MI, LLC divisions to fund payments on two promissory notes for $2.5 million and $1.5 million due to Can B Corp's largest institutional investor.
Marco Alfonsi, Can B's Chief Executive Officer, stated, "We are very pleased with the conclusion of our restructuring, which provides an inflow of capital and a major clean-up of our balance sheet. The debt consolidation and extension give us ample runway to uplist to a national securities exchange. We plan on accelerating on that path once we file our 10K for our year ended December 31, 2022, and 10Q for our first quarter ended March 31, 2023."
Spartan Capital Securities acted as the placement agent for the financing.
About Can B Corp.
Can B Corp. (OTCQB:CANB) is a health & wellness company providing the highest quality hemp-derived cannabinoid products, including under its own brands of Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil, and Duramed. Can B utilizes multi-channel distribution to reach consumers, including medical facilities, doctor offices, retailers, online, and direct. Can B Corp. operate R&D and production facilities in Lacey, WA, and Florida. To learn more about Can B Corp. and our comprehensive line of high-quality products, please visit: Canbiola.com and www.canbcorp.com, follow Can B Corp on Instagram and Facebook or visit one of the 1,000+ retail outlets that carry Can B Corp. products.
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