Sweet Natural Trading Co. Announces Issuance of Secured Debentures and Agreements to Issue Shares to Certain Creditors

Toronto, Ontario--(Newsfile Corp. - May 7, 2019) - Sweet Natural Trading Co. Limited (TSXV: NTRL) ("Sweet Natural Trading", or the "Company") is pleased to announce that it has closed on a secured convertible debenture financing (the "Financing") in the principal amount of $450,000. The net proceeds of the Financing will be used for general working capital purposes.

The Financing included the issuance of debentures (the "2019 Debentures") maturing two years from the effective closing date of May 7, 2019 in the principal amount of $450,000 and bearing interest at a rate equal to the greater of (a) an annual interest rate of 15% payable per annum (b) a royalty equal to 3% of net sales per annum, subject to an annualized combined effective interest of a maximum of 24%, payable semi-annually in common shares of the Company. The 2019 Debentures are convertible into common shares of the Company at a price of $0.12 per share. The Company may redeem the 2019 Debentures at any time by repaying the principal amount of the 2019 Debenture then outstanding plus all accrued but unpaid interest thereon. The Financing also included the issuance of 3.75 million common share purchase warrants (the "Warrants") to subscribers, each such Warrant being exercisable for one common share of the Company for a period of 2 years and an exercise price of $0.08 per share.

Holders of the Company's previously issued 15% secured debentures issued in 2016 and maturing in 2020 (the "2016 Debentures") have agreed to extend the maturity dates for these debentures to May 7, 2021, subject to the approval of the TSX Venture Exchange (the "Exchange"). The 2019 Debentures shall rank parri passu with the 2016 Debentures and have security over all the assets of the Company.

The Company has also begun entering into agreements with holders of its unsecured convertible debentures and certain other unsecured debtholders (the "Unsecured Creditors") to receive common shares of the Company at a deemed issuance price of $0.05 per share in respect of the principal and interest outstanding on such debt in in the aggregate amount of $2.16 million, resulting in the issuance of 43.2 million common shares (the "Common Shares"). The issuance of the Common Shares to the Unsecured Creditors is subject to approval of the Exchange. The Common Shares will be subject to a hold period of four months plus a day.

About Sweet Natural Trading Co. Limited

Sweet Natural Trading Co. Limited is a leading natural sweetener company that promotes healthier eating by selling food products that reduce refined, added sugar consumption. With obesity and diabetes reaching unprecedented levels, the Company is focused on making a positive impact in reducing these lifestyle diseases. Sweet Natural Trading Co. products are sold in over 7,000 stores including major retail customers such as Loblaws, Walmart, Whole Foods, Costco, Publix, Sprouts and distributors including UNFI and KeHE.

For more information about Sweet Natural Trading Co. Limited please contact:

David Darakjian
CFO of Sweet Natural Trading Co. Limited
416.288.1019
ddarakjian@sweetnaturaltrading.com

Neither TSX Venture Exchange Inc. 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.

This news release contains forward-looking statements and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the Offering and the Company's strategic growth plan, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are risks detailed from time to time in the filings made by the Company with securities regulators.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/44613

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