Weekend leadership focused on core business objectives of US brand growth and preparations for the 2020 hemp season at Northern Lights Organics
Weekend Unlimited Inc. (“Weekend” or the “Company”) (CSE:POT,FSE:0OS1, OTCQB:WKULF)) is pleased to announce that the Company has negotiated a loan repayment in the amount of $650,000, plus interest paid to date in the amount of $33,750, in relation to the Northern Lights Supply retail operation in Alberta.
Entered into by previous leadership, the opportunity to own up to 49% of the Northern Lights Supply store in Alberta no longer fits into the Company’s highly focused priorities. As outlined in the Company’s shareholder letter in December 2019, leadership has aligned operations to realize its US branded product strategy and ramp up its Canadian Northern Lights Organics hemp farm into full production for the 2020 growing season.
At this time a retail operation in Alberta is not a core business objective and, as a result Weekend leadership has negotiated an early repayment of the loan, which strengthens its cash position allowing the Company to dedicate its resources to the stated core objectives.
“We cannot foresee a near term revenue opportunity from a continued relationship with Northern Lights Supply as the structure of the arrangement that had been put in place was equity based,” said Mr. Chris Backus, President and CEO. “This move strengthens our cash position, and most importantly allows us to deploy our resources to better revenue producing assets, specifically, branded product growth in the US and readying the Northern Lights Organics property in Canada.”
“We wish the team at Northern Lights Supply the best, with a shared and full understanding that the opportunities that presented themselves a year ago, in a very different environment in the sector, are not the same as we face today. As noted previously, my mandate on behalf of shareholders is drive shareholder value and to do that we must deploy resources to revenue producing assets, which this move helps to accomplish.”
In the agreement, announced on November 20, 2018, the parties entered into a convertible secured 6% interest loan facility for up to $1,200,000, of which the Company advanced $750,000. At any time during the term of the agreement, which was to end December 31, 2022, the Company had the option to convert the full amount of its $1,200,000 loan facility into 49% equity of the retail store, dependent upon approval from Alberta Gaming and Liquor Commission.
For further information, please contact:
Mr. Chris Backus, President & CEO, Director
Telephone: 1(236) 317-2812
About Weekend Unlimited Inc.
Weekend Unlimited is a lifestyle-based recreational cannabis and CBD wellness company. We are developing and launching premium cannabis and CBD brands to deliver life’s highs – anytime, anywhere. Our CBD products are available online and at a retailer near you. Weekend Unlimited is well-positioned to launch and scale the brands that will define cannabis and CBD. Learn more at www.weekendunlimited.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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