Oh Oh !!! Cant close financing and running out of cash. Had to amend Washington deal.....
SOURCE: Golden Leaf Holdings Inc.
March 04, 2016 08:30 ET
Golden Leaf Holdings Ltd. Announces an Update to the Washington Asset Purchase Agreement and Recent Changes to the Board of Directors
TORONTO, ON--(Marketwired - March 04, 2016) - Golden Leaf Holdings Ltd. ("GLH" or the "Company") (CSE: GLH), would like to take this opportunity to update shareholders regarding its strategic partnership (the "Strategic Partnership") with BMF Washington LLC ("BMF"), and recent changes to the Company's Board of Directors.
As previously announced, the agreement between BMF and the Company called for BMF to receive $15 million USD in connection with the Strategic Partnership within 45 days of the transaction closing date together with the issuance of 300,000 warrants exercisable for a two-year period. Under the terms of the agreement, the Company was required to pay $12 million USD in stock and the remaining $3 million USD in cash. BMF and the Company have entered into an amending agreement pursuant to which $1.5 million USD of the cash component of the consideration will be payable in installments over the next 9 months provided that the Company has sufficient cash flow, with a final maturity date of January 14, 2017. The balance of the cash and equity consideration will be payable upon closing of the Company's previously announced convertible debenture financing. The amended payment schedule enables GLH to use the outstanding balance for working capital, focusing on driving sales in both Oregon and Washington State
