Pasha Brands Announces Debt Settlement and Restructuring of Debt
VANCOUVER, British Columbia, May 14, 2020 (GLOBE NEWSWIRE) — Pasha Brands Ltd. (the “Company” or “Pasha”) (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD1) announces that it has reached agreements with certain arms-length parties to settle outstanding indebtedness of $420,000 for consulting services (the “Debt Settlement”), in consideration for the issuance of 6,000,000 common shares (“Shares”) issued at a deemed price of $0.07 per Share.
All securities issued in connection with the Debt Settlement will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.Restructuring of DebtThe Company announces that it has reached an agreement with an arms-length creditor relating to certain expenses and amounts owing pursuant to an employment agreement entered into on February 1, 2019. The obligations totalled $398,000 and have been settled through the transfer of ownership of BC Craft Supply Laboratory Services Ltd. to the creditor.The Company also announces that it has defaulted in its payment obligations pursuant to an agreement dated December 17, 2018 (the “Agreement”), between the Company and Baked Edibles Inc. (“Baked”). The Company and Baked have reached an agreement whereby the Company has agreed to return certain assets acquired pursuant to the Agreement and Baked has agreed to extinguish the final cash payment of $1,250,000 and the anti-dilution warrants owed by the Company to Baked.For further information please contact Matthew Watters, Director, at (604) 687-2038.About Pasha BrandsBased in British Columbia, Pasha is both North America’s largest network and aggregator of craft cannabis and Canada’s only prohibition-era brand house firmly rooted in the culture and made up by the people that created the original cannabis industry. With proven capabilities in cannabis cultivation, genetic research and development, product processing, and retail, Pasha is uniquely positioned in the new legal cannabis market through its network of hundreds of craft cannabis suppliers under the Pasha umbrella.Pasha subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a licence to sell medical cannabis products in Canada. Pasha, and its subsidiary BC Craft Supply Co. Ltd, assists micro cultivation farmers in bringing craft quality into the newly legal cannabis market in Canada by assisting them in both gaining access to licensing but also through its proprietary quality assurance and testing platform known as Craft Labs™, a proprietary platform bringing quality assurance to the craft industry, BC Craft Supply is driven to assist craft growers in obtaining security clearance and licensing to grow as micro-cultivators, specializing in education and compliance to bring growers into the regulated cannabis supply market.Pasha’s common shares trade on the CSE under the symbol “CRFT” and on the FSE under the symbol “ZZD1”.For more information, please visit www.pashabrands.com.Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Pasha disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.