TORONTO--(BUSINESS WIRE)--DionyMed Brands Inc. (“DionyMed” or the “Company”) (CSE:DYME; OTCQB:DYMEF), a multi-state cannabis brands, Direct-to-Consumer and distribution platform, today announced additional investment from its senior secured investor of US$3.2MM and a reorganization of the business to right size the Company. This increases the credit facility with the senior lender to US$19.2 MM. The credit facility bears interest at LIBOR (at a floor of 2.5%) plus 12% plus an anniversary fee of 2.5%, maturing February 6, 2021. While the credit facility is currently in default, the senior lender has agreed to make additional advances to the Company.
In addition, the Company announces a reduction in operating expenses through a targeted reduction of headcount from 299 to 199 allowing the Company to amplify its focus on growing its Direct-to-Consumer cannabis delivery service Chill. These improvements, in conjunction with a revamped marketing strategy and focus on higher-margin products, began in Q3 and will continue through 2019.
The Company is also pleased to announce that its shares have resumed trading on the CSE under the symbol “DYME”, and on the OTCQB under the symbol “DYMEF”. The Company requested a halt in trading when there was a strong possibility it would announce a transaction in the ensuing days; however, multiple other potential transactions of various types have surfaced, all of which require more time for evaluation. The Company is not able to say with certainty whether any of these transactions will be considered, or if considered, entered into, and will provide an update in due course. Any transaction may be subject to definitive documentation, corporate approvals and other regulatory and third-party approvals.
“With respect to these changes,'' said DionyMed CEO Ed Fields, “we’re looking forward to improving market efficiencies and getting the business to breakeven at an accelerated pace. We’re excited about finalizing a deal with the right strategic partner and injecting the capital necessary to drive DionyMed forward as a leader in the cannabis industry.”
The Company is also announcing that Gotham Green has issued a request for repayment of its outstanding balance of US$2.2 MM representing the credit advance made on July 30, 2019 plus accrued and unpaid interest.
Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets. DionyMed sells branded products in every category from flower to vape cartridges, concentrates and edibles. DionyMed serves cannabis consumers through retail dispensary distribution and direct-to-consumer fulfillment with its growing portfolio of award-winning brands. Learn more at DYME.com and follow @DYME_Inc on Twitter and LinkedIn.
Forward-Looking Information and Statements
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements, including but not limited to the risk factors set out in the Listing Statement of the Company available on the Company’s profile on SEDAR at www.sedar.com.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in its entirety by this notice.