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Pompano Beach, FL, Apr 30, 2019 (GLOBE NEWSWIRE via COMTEX) -- Eliminates all Convertible Debt from Balance Sheet
via NEWMEDIAWIRE -- Global Boatworks Holdings Inc. GBBT, +0.00%, builder of luxury floating vessels, is pleased to announce that it has completed the sale of the Luxuria, the second sale of one of its luxury floating vessels.
The sale of the Luxuria allowed the Company to pay down the Company's liabilities and eliminate convertible debt from its balance sheet. The Company had entered into a Note Settlement Agreement with St. George Investments and Tonaquint Inc., lenders that had a secured interest in the Luxuria. St. George and Tonaquint agreed to release their liens upon payment from the sale proceeds and an additional payment of $70,000 in September 2019. This agreement eliminates the last of the convertible debt on the Company's balance sheet.
"The sale of the Luxuria has allowed us to clean up our balance sheet," said Global Boatworks CEO Robert Rowe. "The media coverage that the Luxuria garnered generated a lot of interest in the Company and our luxury floating vessels. We took the opportunity to sell the Luxuria now so we will be positioned to take on financing as needed to build additional vessels or fulfill orders as opportunities arise."
Wednesday, January 22, 2020 6:00 AM
Primary Exchange: OTC PINK
Under the Symbol:GBBT
POMPANO BEACH, FL / ACCESSWIRE / January 22, 2020 / Global Boatworks Holdings, Inc. (OTC:GBBT) a builder of floating luxury vessels, announces the December 3, 2019 completion of a Note Settlement Agreement (the "Agreement") pertaining to a convertible note previously due to Tonaquint, Inc. and the non-convertible note previously due to St. George Investments LLC (the "Note Holders") in the amount of $72,500. The balance of the Agreement was paid by a long-time Company investor. Under the Agreement the Note Holders, upon payment of the $72,500, agreed to forgive the $273,675 balance.
The investor paid the Note Settlement Agreement amount of $72,500 and entered into a new agreement with the Company utilizing a traditional, non-convertible note. As a result of the payment of the convertible portion of the Note and the forgiveness of the balance of the two notes, Global Boatworks will record a Q4 gain on debt settlement of $273,675 plus a gain on the embedded derivative value of approximately $414,000 for a net gain of $690,000 in Q4.
"We are excited to announce the repayment of our convertible debt," said Global Boatworks CEO Robert Rowe. "With the sale of the Luxuria in April and this note repayment, we continue to improve our capital structure to support our long-term timeline and goals, and we believe Global is well-positioned for growth in 2020."
The Company is further involved in negotiations with the holder of one final convertible note totaling $45,000. If successful, the CEO says this would eliminate all convertible debt from the Company's balance sheet.
"Paying off and restructuring the convertible debt on our balance sheet is not only fiscally responsible, it strengthens our balance sheet and enables us to explore new initiatives to help Global Boatworks increase shareholder value in 2020, and beyond," said Rowe