Marijuana Company of America Inc. Announces Full Settlement and Restructuring of Senior Convertible Note
ESCONDIDO, Calif., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Marijuana Company of America Inc. ("MCOA" or the "Company") (OTC: MCOA), an emerging company and leader offering unique exposure to the global cannabis sector, today announces it has completed the payoff of its main financier who has now settled its convertible note position in full and will no longer be dilutive to the share structure of MCOA.
The Company received over $4.5M in financing from an investor starting in 2017 through April 2019. These notes had variable discount features that allowed the investor to make conversions that were discounted to a lookback on the market price, which led to a precipitous decline in the stock over the last few years. Funds received from these notes were used to finance the operations of the prior management team that did not achieve the expected objectives of the Company. However, the company remained saddled with this toxic debt when Jesus Quintero and the new management team were appointed to take control in December 2019.
Going forward for new financing, MCOA has been able to negotiate new, favorable fixed price conversion features for future notes with this fund. Additionally, the Company has graduated to covering its obligations through the sale of registered securities at a fixed price rather than debt, but has the option to use both at a fixed price as needed.
Jesus M. Quintero, CEO of MCOA stated, “Since my appointment as CEO, my goal for our shareholders was to clean up the Company’s balance sheet, slash overhead, produce premium CBD products, and provide a culture that will generate an increase in sales and distribution around the globe. I am delighted with the outcome of these negotiations to reduce our debt position and consolidate our largest outstanding convertible notes. We anticipate this substantial reduction in debt will allow us to better utilize our financial resources to expand our hempSMART™ extensive full line of premium CBD organic products, as well as provide protection for dilution events to preserve shareholder value.
“We are making every effort to retire the remaining small balance of convertible notes prior to conversion with money raised from the current S-1 registration statement filed with the Securities & Exchange Commission. MCOA is now moving forward with anticipation of raising funds without the use of toxic debt financing. This will serve us well as we seek to uplist within the OTC market to a higher reporting tier as well as satisfy the requirements for “Penny Stock” exemption by OTC Markets based on our year end assets exceeding the $2M threshold.”
Senior Board Member, Edward Manolos said, “I would like to thank Jesus for weathering the storm during the restructuring phase of the Company and during the darkest times of the COVID pandemic. The shareholders of MCOA are fortunate to have had a solid leader like Jesus to guide the Company through an incredible turnaround. It’s a new day for MCOA!”
For more information, please visit: https://www.marijuanacompanyofamerica.com/
About Marijuana Company of America Inc.
MCOA is an emerging company and leader offering unique exposure to the global cannabis sector. The Company recently repositioned itself from Research & Development to reflect certain market opportunities identified by Management to a new revenue producing driven Cannabis Marketing Company with focus on sales & marketing of “hempSMART™” premium proprietary botanical legal hemp-based CBD (cannabidiol) products.
MCOA’s hempSMART™ offers an extensive full line of premium CBD organic products that are scientifically driven and double lab tested to ensure purity and potency. The Company will direct the sale of its products to wholesalers, distributors, medical community, online e commerce consumer platform, and a proven network affiliate marketing program. The Company recently announced launched international sales, production, and marketing expansion
About hempSMART Products Containing CBD
The United States Food and Drug Administration (FDA) has not recognized CBD as a safe and effective drug for any indication. Our products containing CBD derived from industrial hemp are not marketed or sold based upon claims that their use is safe and effective treatment for any medical condition as drugs or dietary supplements subject to the FDA's jurisdiction.
Forward Looking Statements
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
Released January 28, 2021