Lumiera Health Successfully Completes Restructured Loan Amendments and Restarts Operations
MONTREAL, Feb. 6, 2023 /CNW/ - Lumiera Health Inc. (TSXV: NHP) (the "Company" or "Lumiera "), a company specializing in the development and commercialization of natural health products, is pleased to provide a corporate update regarding its operations, management changes, and the favourable restructuring of debt terms; further to its December 9th, 2022 press release.
The Company has successfully restructured its secure lending note with a sole creditor (the "Creditor") to include the following terms:
- The notes no longer bear interest;
- The notes have a 5 years maturity, which can be extended for an additional 5 years;
- Repayment of capital is based on a percentage of the Company' EBITDA produced from sales and operations.
- First payment due in March 2024.
The secured loan amount of $1.1 million is interest free and has an initial term of 5 years without penalty. Repayments will be based on a percentage of the Company's EBITDA produced from sales and operations and can be made either in cash or common shares (subject to TSX V approval) The secured loan is repayable at any time without penalty during its initial 5-year term. The new terms represent significant savings for the Company.
The Company in collaboration with the Creditor has appointed 9482-9256 QUEBEC INC. as the sole and exclusive third-party manager ("manager") and operator to provide day-to-day management and operational support services to the Company. As additional capital is required, the Manager has agreed to provide and advance the capital requirements (collectively the "Advances"). All such Advances will bear interest at a rate corresponding to the prime lending rate of the Royal Bank of Canada plus 4% compounded monthly (the "Interest"). Such Advances and Interest will be guaranteed by a mortgage on the universality of the assets of the Company. The Creditor and the Company agree that the Manager and the Creditor will enter into a Pari Passu Agreement to establish their respective rights. The agreement also provides that the advances may at the option of the manager, subject to TSXV approval, be repaid in common shares.
Both Mr. Carlos Ponce and Mr. Simon Castonguay, former CEO and former interim CFO, are no longer employed by the Company. Both were also directors of the Company and both resigned from the Company's board of directors.
These changes and agreements represent significant progress for Lumiera. It enables a path forward for its operations plan, as well as provide the Manager a path to deliver on its business plan. The Board of Directors thanks Shareholders, Customers, and Suppliers for their patience over the past weeks. Further details will be provided when available.
Lumiera specializes in the development and commercialization of consumer products for the natural health industry. The Company sells herbal tonics and natural supplements through its Holizen Laboratories division, with a diverse portfolio including a line of innovative sleep aids. The Company is also commercializing a unique topical product line acting on the endocannabinoid system, without the use of cannabis, that provides an innovative solution for chronic pain and inflammation. A pioneer in the natural health innovation space, the Lumiera brand is rooted in the core values of science, nature and compassion. Our goal is to make people's lives better by developing natural health and wellness products that are effective, safe and trustworthy.
For more information visit: www.lumiera.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions indicate such "forward-looking information" as they relate to Lumiera. All statements other than statements of historical fact may be forward-looking information. Such statements reflect Lumiera' current views and intentions with respect to future events, and current information available to Lumiera, and are subject to certain risks, uncertainties and assumptions. Such risks and uncertainties include, among others, the risk factors included in Lumiera' annual management's discussion and analysis for the year ended November 30, 2020, which is available under the issuer's SEDAR profile at www.sedar.com. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Should any factor affect Lumiera in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Lumiera does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and Lumiera undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
SOURCE Lumiera Health Inc.
Mr. André Rancourt, 514.500.0059, [email protected]
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