Freedom Leaf
Announces Closing of a $5 Million Round of Growth Capital
Financing supports the evolution of the Company into a leading CBD
Hemp player in North America
DALLAS, TX -- November 18, 2019 -- InvestorsHub
NewsWire -- Freedom Leaf,
Inc. (“Freedom Leaf” or the “Company”) (OTCQB: FRLF), a first in class hemp
consumer packaged goods company that recently
acquired Green Lotus™ to build its
position as a leading provider of natural cannabinoid-rich hemp
products, announced today that it closed a $5 million convertible
note financing led by an affiliate of Merida Capital. David
Goldburg, Chairman of the Board, and Dave Vautrin, Independent
Director, invested $125,000 and $67,000, respectively, in the
convertible note financing. Proceeds from the financing will
primarily support the Company’s production, marketing, and sales
efforts as it continues to build its position as a leading CBD and
hemp company servicing the North American and Mexican
markets.
The financing is in the form of a unit
consisting of a three-year senior unsecured note accruing interest
at 8%, convertible at the holder’s option into the Company’s common
stock at $.20 per share, and a three-year warrant to acquire shares
of the Company’s common stock. A portion of the proceeds in the
financing represent the cancellation of existing promissory notes
held by affiliates of Merida Capital. For additional details,
please reference the Form 8-K to be filed with the U.S. Securities
and Exchange Commission.
Carlos Frias, CEO and Board Member of Freedom
Leaf, commented: “This financing will give the Company the
necessary capital to fulfill a robust pipeline of new orders from
our distribution partner in Mexico, CBD Life SA; Greenlane
Holdings, a leading distributor of cannabis and CBD products in the
U.S.; and several other leading regional and national retailers who
are increasingly looking to meet consumer demand with today’s
highest quality CBD and hemp products.”
David Goldburg, Chairman of the Board of Freedom
Leaf, added: “The acquisition of Green Lotus has positioned the
Company to become a leading consumer packaged goods CBD and hemp
player in North America. The conversion price of the convertible
note, which is at a substantial premium to the current market
price, reflects the high level of confidence Merida has in the
ability of the Company to execute on its business plan.”
Freedom Leaf acquired Green Lotus™ on May 31,
2019, immediately enabling the launch of a more robust product line
focused on leading CBD and hemp products, enhanced distribution
capabilities and penetration into high-growth emerging markets
worldwide.
About Freedom Leaf,
Inc.
Freedom Leaf Health is a first-in-class hemp consumer packaged
goods company with a family of trusted brands that provide premium
hemp products for greater wellness, balance and longevity. Green
Lotus™ and IrieCBD are the Company's foremost brands, offering
premium hemp products such as topicals, tinctures, vapables,
softgels and sparkling beverages. Freedom Leaf Health is a fully
reporting and audited publicly-traded company trading under the
symbol (OTCQB: FRLF).
About Green Lotus™
Green Lotus™ is a premium hemp brand that provides responsibly
produced, natural cannabinoid-rich products to consumers and
businesses. The brand is veteran-led and powered by a diverse team
dedicated to promoting a world where the restorative power of hemp
is accessible to all people. For more information, please
visit https://greenlotushemp.com.
Safe Harbor Statement
This press release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
that are intended to be covered by the "safe harbor" created by
those sections. Statements in this press release that are not
strictly historical are “forward-looking” statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements generally can be identified by
phrases such as “believes,” “expects,” “anticipates,” “foresees,”
“forecasts,” “estimates” or other words or phrases of similar
import. Similarly, statements herein that describe Freedom Leaf’s
business strategy, outlook, objectives, plans, intentions or goals
also are forward-looking statements. All such forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those in
forward-looking statements. Factors that could cause or contribute
to differences include the uncertainty regarding viability and
market acceptance of Freedom Leaf’s products and services, changes
in relationships with third parties, and other factors described in
Freedom Leaf’s most recent periodic filings with the Securities and
Exchange Commission.
These risks and uncertainties include, without
limitation, changes in general industry or regional market
conditions; changes in consumer and customer preferences for our
products; loss of business from increased competition; changes in
strategic relationships; unfavorable fluctuations in currencies or
interest rates in the regions in which we operate; changes in
regulatory conditions; changes in tax laws; import and export duty
and tariff rates in or with the countries with which we conduct
business; and negative impact of any governmental investigations
and associated litigations.
The occurrence of any of these risks and
uncertainties could have a material adverse effect on the Company’s
business, financial condition and results of operations. The
Company is not obligated to revise or update any forward-looking
statements to reflect events or circumstances that may arise after
the date of this release.
Media Contacts:
Anthony Feldman / Nick Opich
KCSA Strategic Communications
(347) 487-6194 / (212) 896-1206
afeldman@kcsa.com / nopich@kcsa.com
Investor Contacts
Phil Carlson / Erika Kay
KCSA Strategic Communications
Phone: (212) 896-1233
Email: pcarlson@kcsa.com / ekay@kcsa.com