
September 04, 2023
Melodiol Global Health Limited (ASX:ME1, FRA:1X8) (‘Melodiol’ or ‘the Company’) is pleased to provide the following updates on its agreements with La Plata Capital, LLC (‘La Plata’) which considerably strengthens the Company’s balance sheet ahead of its next phase of growth.
Highlights:
- New Agreement with La Plata to pay all future interest payments in equity, extend October maturity date of US$482,500 to June 2024 in addition to regular offsets against principal, strengthening the Company’s balance sheet
- Conversion of $200k of November 2022 secured notes and accrued interest to equity
Further to the Company’s announcement on 14 June 2023, the Company is pleased to provide the following update with respect to La Plata’s secured note holding in the Company. Per the terms of the previous extension, the Company was granted the option, subject to shareholder approval, to satisfy the June 2023 and September 2023 quarterly interest payments to La Plata by the issue of fully paid ordinary shares (‘Shares’) at an issue price equal to the Company's closing Share price on the trading day immediately prior to issuance, based on a value ratio of 1.5 times the interest due. Since the signing of this agreement, the Company has been unable to obtain shareholder approval in the timeframe contemplated by the agreement, and therefore has worked with La Plata to address this breach. Under the terms of a new agreement, the Company will pay, subject to shareholder approval, the June 2023 interest payment in Shares, based on a value of 1.7 times the interest payable, and the September 2023 interest payment in Shares, based on a value of 2.2 times the interest payable, at a deemed issue price equal to the Company’s closing Share price on the trading day immediately prior to issuance and subject to a floor price of $0.002. The satisfaction of the June and September interest payments in Shares remain subject to shareholder approval, provided that shareholder approval is obtained on or around 30 September 2023. Furthermore, the Company will seek shareholder approval to make the December 2023, March 2024 and June 2024 interest payments in Shares, based on a value of 1.5 times the interest payable, at a deemed issue price equal to the Company’s closing Share price on the trading day immediately prior to issuance, subject to a floor price of $0.002. La Plata has also agreed to waive the October 2023 maturity date of US$482,500 of notes and extend the maturity to June 2024. As a result, the majority La Plata’s debt is now due June 2024. Finally, the Company will seek prior shareholder approval to make a monthly principal repayment of US$80k in Shares, based on a value of Shares equal to 1.5 times the principal amount repaid at a deemed issue price equal to the Company’s closing Share price on the trading day immediately prior to issuance and subject to a floor price of A$0.002. If shareholder approval is not forthcoming, the Company will be required to make the monthly principal repayment in cash. The result of this is that up to US$560k of principal will be repaid in Shares (or cash) prior to maturity. In exchange for these concessions, the Company will make a one-time cash payment of US$160,000 to La Plata on or around 30 September 2023.
Secured Notes
Additionally, the Company has reached an agreement to convert $200,000 of existing non La Plata secured notes (refer to press releases dated 19 May 2023 and 1 November 2022) in addition to accrued interest ($40,438) to equity via the issuance of 53,571,429 Shares at a deemed issue price of $0.007 per Share. The Share issuance was completed today under the Company’s existing Listing Rule 7.1 Capacity.
Management commentary:
CEO and Managing Director, Mr William Lay said: “The further restructuring of La Plata’s secured debt will reduce cash requirements from this facility, with no interest being paid in cash and the vast majority of principal due in mid-2024, subject to shareholder approval being forthcoming. Additionally, the conversion of principal and accrued interest from the November Secured Notes provides further assistance to the Company’s balance sheet.”
Click here for the full ASX Release
This article includes content from Melodial Global Health, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
The Conversation (0)
05 October 2023
Melodiol Global Health
Global Portfolio of Strategic Cannabis and Plant-based Businesses
19 September
Cannabis Crossroads: Record US Demand Meets Federal Gridlock
The US cannabis industry is at a turning point. State-level legalization and retail growth continue to accelerate, but federal policy remains stalled, leaving businesses navigating both opportunity and uncertainty. Record consumer demand is driving sales, yet outdated regulations, restrictive... Keep Reading...
22 July
10 Biggest Cannabis Stocks in the US and Canada in 2025
After initial optimism for rescheduling in the US, the cannabis market has faced challenges in 2025. Despite signs of support from US President Donald Trump and members of his administration, regulatory uncertainty persists in the US. Companies are shifting focus to match changes in consumer... Keep Reading...
17 July
Cannabis Market Update: H1 2025 in Review
The first half of 2025 played out differently than many cannabis market participants expected. Heading into the year, there was optimism that rescheduling in the US would reduce or eliminate challenges, but the industry continued to grapple with persistent federal regulatory uncertainty,... Keep Reading...
25 June
Thailand Reverses Course on Cannabis, Moves to Recriminalize Amid Political Fallout
Thailand’s groundbreaking experiment with cannabis decriminalization is rapidly unraveling, with the government formally moving to reclassify the plant as a narcotic and ban recreational sales.The decision has sent shockwaves through an industry once projected to be worth over US$1 billion.The... Keep Reading...
09 May
A State-by-State Guide to Cannabis in Australia
Australia federally legalised medicinal cannabis in 2016, and Australia's cannabis market has seen major growth since then.Medical cannabis approvals were up by 120 percent in the first half of 2023 compared to the same period in 2022. Statista forecasts that Australian cannabis revenue will... Keep Reading...
01 May
New Cannabis Consumption Trends, Regulatory Shifts Seen Driving Market in 2025
Understanding trends in the cannabis industry is paramount for investors eyeing a market with steady growth potential, but the landscape is complex as products and regulations continue to evolve. Consumption habits are changing as edibles, vaping and THC beverages gain traction, especially among... Keep Reading...
Latest News
Latest Press Releases
Related News
TOP STOCKS
American Battery4.030.24
Aion Therapeutic0.10-0.01
Cybin Corp2.140.00