Bhang Issues 19.5 Million Shares, 11.9 Million Warrants As It Attempts To Repair Balance Sheet

Bhang Inc (CSE: BHNG) appears to be in the process of blowing out its share structure as it looks to slash debt from its balance sheet. The company announced this morning that it has completed a “number of transactions” with that of Cannabis Growth Opportunity Corp (CSE: CGOC), largely focused on settling debt through the issuance of shares.

A series of transactions took place that involved share issuances, including:

• $600,000 owed under two convertible promissory notes were settled, via the issuance of 6,666,667 subordinate shares of Bhang at $0.09 per share.
• An outstanding forbearance agreement was settled, via a payment amount of $1.15 million. This was settled via the issuance of 12,809,524 shares at $0.09 per share, along with the issuance of 5,261,905 warrants with an exercise price of $0.15 and an expiry of two years.
• The issuance of 6,666,667 warrants by Bhang as part of receiving a $1.0 million operating credit facility, which bears interest at 8% per annum and boasts a maturity of 3 months. The facility is secured by all assets of Bhang. All debt under the facility is convertible at $0.15 per share. The company has already drawn a total of $0.26 million under the facility. Warrants issued are under the same terms as above

Bhang Inc last traded at $0.125, and had a total of 72.0 million shares outstanding prior to the latest issuances as per the CSE.

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Information for this briefing was found via the Canadian Securities Exchange and Bhang Inc. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.