Vancouver, British Columbia – HEMP FOR HEALTH INC. (CSE: HFH) (FSE: 9HH) (the “Company”) announces that its Board of Directors has approved resolutions regarding a consolidation, debt settlement and financing.
Consolidation: The Company’s outstanding common shares will be consolidated on the basis of two existing shares for one new share (the “Consolidation”). Currently, the Company’s authorized share capital is an unlimited number of common shares without par value, of which 24,162,001 shares are issued and outstanding, with a further 8,529,000 shares reserved for issuance upon the exercise of outstanding warrants. Upon completion of the share consolidation, there will be approximately 12,081,000 common shares issued and outstanding, subject to shares being issued pursuant to outstanding warrants being exercised prior to the effective date of the consolidation and subject to adjustment for fractional shares.
The Company does not intend to undergo a name change in conjunction with the proposed consolidation.
Debt Settlement: The Company also announces that it has arranged to settle certain outstanding debt with various creditors in the aggregate amount of $400,125 through the issuance of up to 8,002,500 post-consolidated shares at a post-consolidated price of $0.05 per share (the “Debt Settlement”).
The proposed Debt Settlement involves amounts owing to both arm’s length and non-arm’s length parties.
Financing: In conjunction with the above, the Company has arranged a financing of up to $1 million (the “Financing”) through the issuance of up to 20,000,000 Special Warrants at $0.05 per Special Warrant. Each Special Warrant will convert to one unit (“Unit”) upon closing of the Consolidation. Each Unit will consist of one post-consolidated share and one-half of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one post-consolidated share at $0.10 per share for a period of 24 months from closing. The term of the Warrants may be reduced should the Company’s shares trade at or above $0.20 for 30 consecutive days on a Canadian stock exchange.
Proceeds from the Financing will be used to investigate new business opportunities, and for general working capital. The Company may pay finders’ fees with respect to this Financing.
The required documents pertaining to the Consolidation, Debt Settlement and Financing will be filed with the regulatory authorities, and remain subject to CSE approval.
Securities issued in connection with the Debt Settlement and the Financing will be subject to a hold period of four months and one day.
ON BEHALF OF HEMP FOR HEALTH INC.
(sgd.)” Robert Eadie
President & CEO
The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.
FOR FURTHER INFORMATION PLEASE CONTACT: Robert Eadie
Toll Free: 1-866-602-4935