Cansortium Inc. (“Cansortium” or the “Company”) (CSE: TIUM.U), (OTCQB: CNTMF), a vertically-integrated cannabis company operating under the Fluent™ brand, today announced the satisfaction of its obligations under an amended and restated promissory note (the “Promissory Note”) dated January 16, 2020 in the principal amount of US$12,933,290.02 that was owing to Can Endeavour LLC (“Can Endeavour”).
The Promissory Note had a maturity date of December 1, 2022; however, pursuant to the terms thereunder, Can Endeavour elected to convert the principal amount of the Promissory Note into 21,555,483 common shares of the Company at US$0.60 per share. The common shares have been issued by the Company to Can Endeavour and all accrued interest on the Promissory Note has been repaid in cash. Accordingly, the Company has satisfied its obligations under the Promissory Note and it has been cancelled.
The Promissory Note was originally issued in connection with the Company’s acquisition of Fluent Servicing, LLC, in August 2018. Fluent Servicing, LLCis an indirect wholly-owned subsidiary of the Company.
The common shares referenced in this news release have not been, nor will they be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, these securities may not be offered or sold within the United Statesunless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Cansortium in any jurisdiction in which such offer, solicitation or sale would be unlawful.
