C21 Investments Sees CEO Extend Term, Debt Maturity Pushed Six Months

C21 Investments (CSE: CXXI) this morning announced that current CEO and largest debtholder Sonny Newman has agreed to extend his term with the company for a period of three years as the company continue to focus on its Nevada operations. Further, the company has seen its lease for its Fernley, Nevada company extended for a period of three years and the push-out of certain debt maturities.

Despite Newman’s extended term with the company, evidently he is uncertain on the future success of the firm, with Newman still refusing to see his debt turned into equity at the company despite being the chief executive. The currently outstanding principal of $18.2 million associated with the purchase of Silver State Relief has seen its maturity pushed only six months, to that of January 1, 2021, with Newman continuing to receive monthly debt payments of $600,000. Newman has also extended the lease on the Fernley facility for an additional three years, roughly in line with his employment contract.

Further, the company indicated that it is currently in search of a “favourable, non-dilutive debt financing arrangement.”The financing would be used to enabled C21 to meet its current debt obligations along with providing capital for further acquisitions in Nevada. The intent is to service the financing via existing cash flows.

Finally, the company has stated that the month of June is on track to set a new record for monthly sales. The month is said to be trending as much as 26% higher than the previous quarter, with the company also claiming a 6% increase in market share within the state.

C21 Investments last traded at $0.53 on the CSE.

Information for this analysis was found via Sedar and C21 Investments. The author has no securities or affiliations related to the discussed organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.