03:13:18 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Lumiera Health Inc
Symbol NHP
Shares Issued 169,965,217
Close 2022-12-08 C$ 0.005
Market Cap C$ 849,826
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Lumiera signs management deal to resume operations

2023-02-06 10:41 ET - News Release

Mr. Andre Rancourt reports

LUMIERA HEALTH SUCCESSFULLY COMPLETES RESTRUCTURED LOAN AMENDMENTS AND RESTARTS OPERATIONS

Lumiera Health Inc. has provided a corporate update regarding its operations, management changes and the favourable restructuring of debt terms, further to its Dec. 9, 2022, press release.

The company has successfully restructured its secure lending note with a sole creditor to include the following terms:

  • The notes no longer bear interest.
  • The notes have a five-year maturity, which can be extended for an additional five years.
  • Repayment of capital is based on a percentage of the company's EBITDA (earnings before interest, taxes, depreciation and amortization) produced from sales and operations.
  • First payment is due in March, 2024.

The secured loan amount of $1.1-million is interest free and has an initial term of five 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 Venture Exchange approval). The secured loan is repayable at any time without penalty during its initial five-year term. The new terms represent significant savings for the company.

The company is also pleased to announce that it has entered into a management agreement providing for Lumiera's sales and operations to resume.

The company in collaboration with the creditor has appointed 9482-9256 Quebec Inc. as the sole and exclusive third party 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. All such advances will bear interest at a rate corresponding to the prime lending rate of the Royal Bank of Canada plus 4 per cent compounded monthly. 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 TSX-V approval, be repaid in common shares.

Management changes and resignation of two directors

Both Carlos Ponce and Simon Castonguay, former chief executive officer and former interim chief financial officer, 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.

About Lumiera Health Inc.

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. Its goal is to make people's lives better by developing natural health and wellness products that are effective, safe and trustworthy.

We seek Safe Harbor.

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