SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) introduced the departure of a number of prime executives and a brand new financing cope with Trulieve Hashish Corp. (CSE: TRUL) (OTCQX: TCNNF) together with two present vital shareholders, Pura Vida Investments and Seventh Avenue Investments for $17.3 million.
Slang’s CEO Chris Driessen has resigned and Drew McManigle has been appointed interim CEO and Chairman. McManigle additionally succeeds Peter Miller as Chairman of the Board and whereas Miller stays a director of the Firm. Driessen has been with the corporate since its early days because the Organa Vape model, which commanded an enormous market share in Colorado within the early days of adult-use gross sales. McManigle is the Founder and Chief Government Officer of MACCO Restructuring Group, LLC and he plans on tapping Macco’s assets for speedy strategic critiques and marketing strategy implementation.
Along with these modifications, Driessen, Chris Donnelly, Kelly Ehler, Keith Stein, and Robert Verdun have all resigned from the Board, efficient instantly.
“I’m excited in regards to the alternative to guide SLANG and additional develop its established working platform within the hashish trade. My focus is on assuring SLANG is each working effectively and profitably capitalizing on new development alternatives” mentioned interim CEO and Chairman Drew McManigle. “Our prime precedence is the evolution of SLANG and its strategic positioning. The concurrent financing spherical represents a vote of confidence from a number one trade companion, Trulieve, and two of our largest shareholders, Pura Vida and Seventh Avenue.”
Slang additionally determined to cut back its Oregon operations and can consolidate manufacturing to its Colorado facility. Thus, Slang is pivoting its strategic agenda and specializing in its core markets of Colorado and Vermont. McManigle is claimed to guide the corporate to success by leveraging its core platform to drive near-term profitability and tactfully information the corporate’s long-term technique in connection along with his appointment.
Trulieve, Pura Vida, Seventh Avenue, and different buyers will present SLANG a mortgage of $17.3 million, which is topic to an authentic subject low cost of three% and could have a three-year time period and a PIK rate of interest of 9.75%, compounded quarterly, with the complete excellent stability, together with curiosity, changing into due and payable on third anniversary of the Mortgage Transaction . Moreover, SLANG pays the Lenders an combination whole quantity equal to $3.6 million on the sooner of: (i) the Maturity Date; and (ii) any date of prepayment of the Preliminary Mortgage Quantity. A minimum of 50% of the mortgage proceeds will likely be allotted to the event of operations in Vermont to realize long-term profitability and additional execute strategic development goals.
“Our funding in SLANG underscores the success of our strategic partnership, in addition to our dedication to offering the trusted and dependable manufacturers our clients depend on,” mentioned Kim Rivers, CEO of Trulieve. “Since starting our unique partnership in Florida, we’ve got been capable of convey SLANG to further markets, expanded into wholesale, and now look ahead to continued development at scale and mutual success as we attempt to offer our clients with the highest-quality merchandise and unparalleled expertise they will count on at Trulieve.”
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