MONTREAL – Lumiera Health Inc. (TSXV: NHP) (the “Company” or “Lumiera”), a company specializing in the development and commercialization of natural health products, is pleased to announce that it has entered into an amending agreement with its third-party lender relating to the Note in circulation, the principal amount of which currently amounts to $1,325,000.
As part of the amendment agreed with the lender, the Company reimburses $325,000 capital in order to reduce its principal amount to $1,000,000 and extend the maturity date of the loan to December 1, 2022. In addition, the Company and the lender have agreed to extend certain of the covenants to provide the Company with flexibility in executing its accelerated growth plan.
Improvement of the debt structure
As part of its accelerated growth plan, Lumiera continues to identify savings and allocate them to inventory to support growth. To this end, the Company entered into an agreement with a new lender, for an amount of $400,000. This amount will be used to repay the outstanding third-party note and free up short-term cash flow; The new loan has a term of two years and pays monthly interest of 12% plus 3% payable at maturity.
The Lender will receive 8,000,000 non-transferable warrants. Each warrant will entitle its holder to acquire one common share, at an exercise price of $0.05 per share, for a period of two years ending February 25, 2024. The Warrants will expire, unless exercised, on the 30th day after the Company redeems the Note.
The new loan is subject to certain standard conditions, including, but not limited to, receipt of all necessary approvals, including acceptance of the TSX Venture Exchange.
On Lumiera Health
Lumiera specializes in the development and marketing 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 range of innovative sleep aids. The Company also markets a unique line of topical products that act on the endocannabinoid system, without the use of cannabis, which offers an innovative solution for chronic pain and inflammation. A pioneer in natural health innovation, the Lumiera brand is rooted in the core values of science, nature and compassion. Our goal is to improve people’s lives 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 that term is defined under applicable Canadian securities laws. The words ‘may’, ‘would’, ‘could’, ‘should’, ‘potential’, ‘will fly’, ‘seek’, ‘intent’, ‘plan’, ‘anticipate’, ‘believe’, ‘estimate’, “expect” and similar expressions indicate such “forward-looking information” with respect to Lumiera. All statements other than statements of historical fact may be forward-looking information. These statements reflect Lumiera’s current beliefs and intentions regarding future events, as well as current information available to Lumiera, and are subject to certain risks, uncertainties and assumptions. These risks and uncertainties include, among others, the risk factors included in Lumiera’s annual management report for the year ended November 30, 2020, which is available under the issuer’s SEDAR profile at www.sedar.com. Important factors or assumptions were applied to provide 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 differ from those described herein, should one or more of these risks or uncertainties materialize. If any factor affects Lumiera in an unexpected way, or if the assumptions underlying the forward-looking information prove incorrect, the actual results or events could differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Further, Lumiera assumes no 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 the forward-looking information, except as required by applicable law.
Lumiera Health Inc.
Acting Chief Financial Officer
Phone. : 514-880-7772