Mr. Forrest Hoffmaster reports
SCHWAZZE ANNOUNCES RESTRUCTURING OF FEBRUARY 2025 DEBT OBLIGATIONS
Medicine Man Technologies Inc. has finalized an agreement with two of its lenders to restructure its $15.0-million Altmore LLC loan agreement and its $17.0-million Reynold Greenleaf & Associates LLC promissory note, both previously due in February, 2025. This improves the company's financial position by extending the maturities of both debt instruments to the end of 2025 and materially reducing amortization payments for the Altmore loan agreement.
"This restructuring marks a pivotal accomplishment for Schwazze," said Forrest Hoffmaster, interim chief executive officer of Schwazze. "Extending the maturities for our near-term debt obligations provides us with the financial flexibility needed to execute our strategic growth initiatives in both Colorado and New Mexico. We appreciate our lenders for their support and confidence in our strategic vision. With the close of these agreements, Schwazze will have no debt maturities until November of 2025."
Key terms of the amended debt instruments include the following.
Altmore loan agreement:
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Nine-month maturity date extension from February, 2025, to November, 2025;
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Reduction of quarterly principal payment from $750,000 to $300,000, which became effective in the second quarter 2024 payment; additionally, the company will pay a quarterly administrative fee of $75,000;
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No change in interest rate of 15 per cent.
R. Greenleaf promissory note:
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Nine-month maturity date extension, subject to certain conditions contained in the amendment, from February, 2025, to November, 2025, for 90 per cent of the principal amount; the remaining 10 per cent of the principal amount will be paid in February, 2025;
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No change in interest rate of 5 per cent.
About Medicine Man Technologies Inc.
Schwazze is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico, and will continue to explore taking its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.
Schwazze is anchored by a high performance culture that combines customer-centric thinking and data science to test, measure and drive decisions and outcomes. The company's leadership team has deep expertise in retailing, wholesaling and building consumer brands at Fortune 500 companies, as well as in the cannabis sector.
Medicine Man Technologies Inc. was Schwazze's former operating trade name. The corporate entity continues to be named Medicine Man Technologies Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.
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