The firm owed Naturo Group Investments Inc for a strategic advance which was a debt of C$197,000
BevCanna Enterprises Inc () () said it has strengthened its balance sheet and preserved cash amid these uncertain times by settling a debt with the issue of shares.
The firm owed Naturo Group Investments Inc for a strategic advance, which was a debt of C$197,000, and so issued it with 492,750 shares at a deemed price of C$0.40.
Naturo is controlled by Marcello Leone, Bevcanna's chief executive, chairman and a director.
READ: BevCanna Enterprises secures equity and debenture financing to fuel growth
"Repaying the strategic advance through equity represents a good opportunity to strengthen our balance sheet and preserve liquidity during these uncertain times," John Campbell, the finance chief at Bevcanna said in a statement.
"We're pleased to have Naturo Group as a continued partner, and their interest in acquiring additional equity is a strong indicator of their long-term confidence in the solid market position we are building in this emerging industry," he added.
The shares acquired by Naturo are subject to certain resale restrictions, including a statutory hold period of four months and one day from closing.
In Wednesday's statement, Bevcanna also announced it had entered into a marketing and investor relations agreement with Aktiencheck.de.
The latter will provide certain corporate branding, marketing, online corporate communications and investor relations services for one month for total cash consideration of €125,000, of which €25,000 was paid upon striking the deal, with the remaining amount payable over the term.
Contact the author at [email protected]