WeirFoulds LLP - Early Warning Press Release
Toronto, Ontario--(Newsfile Corp. - May 30, 2019) - WeirFoulds LLP (the "Acquiror") has filed an early warning report (the "Early Warning Report") advising of its acquisition of subordinate voting shares (the "SV Shares") of Bhang Inc. (the "Company").
On May 24, 2019, the Company filed Articles of Amendment consolidating the Company's common shares ("Common Shares") on a 1:10 basis and re-designating the Common Shares as SV Shares. The Company also completed a debt settlement transaction, whereby SV Shares were issued as partial consideration to creditors in satisfaction of outstanding debt (the "Debt Settlement Transaction"). Pursuant to the Debt Settlement Transaction the Company issued 535,640 SV Shares (the "Debt Settlement Shares") to 1200124 Ontario Inc. ("1200124"), a company controlled by the Acquiror, at a deemed price of $0.50 per SV Share as partial payment of debt in the amount of $267,820.00 owed by the Company to the Acquiror. In total, the Company issued an aggregate of 950,000 Debt Settlement Shares under the Debt Settlement Transaction, including the 535,640 SV Shares issued to the Acquiror, with the balance of the other Debt Settlement Shares issued to other creditors of the Company.
Prior to the acquisition of Debt Settlement Shares, the Acquiror held 323,807 Common Shares of the Company, representing approximately 9% of the then issued and outstanding Common Shares of the Company. As a result of the Debt Settlement Transaction, the Acquiror holds a total of 870,026 SV Shares, on a post-consolidation basis, representing approximately 19% of the Company's issued and outstanding SV Shares.
This news release is being issued as required by National Instrument 62-104 - Take-Over Bids and Issuer Bids. A copy of the Early Warning Report can be obtained at www.sedar.com under the Company's profile.
For further information, please contact:
Michael Dolphin, Partner
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/45190