Denver, CO, Aug. 12, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — CBD Global Sciences, Inc. (OTC: CBDNF) (CSE: CBDN) (Frankfurt:GS3), “CBD Global” or the “Company”) is pleased to share detailed information about the debt restructuring of the company and the outcome of the two Chapter 7 bankruptcies.
The landscape for CBD Global Sciences has changed dramatically since the emergence from the global pandemic and the completion of the two bankruptcies for two of the Company’s subsidiaries, Global NV and Strasburg Pharms. In 2015 Strasburg Pharms created and sold CBD crude oil on the open market for $20,000.00 USD per liter. Today that same liter of oil will cost between $50.00 – $100.00 USD and is found at a much higher quality and potency than what was afforded back in 2015, mainly through R&D and advancements in growing, harvesting and processing of the CBD oil. Although it was expected that we would see the commoditization of CBD oil and biomass with R&D, Big Agriculture entering the supply chain and many other hosts of advancements in the legalization of Industrial Hemp has caused that to be rapidly accelerated. This commoditization of the CBD molecule happened in its most aggressive state in 2018 and 2019 when large scale producers (1000 acres +) entered the scene for mass production of Industrial Hemp. Based on what we were seeing in 2017 and 2018, we divested the farming operations and moved our focus to finished goods CBD infused products. Fast forward to today and we continue to move our focus up the supply chain with distribution (www.legacydistributiongroup.com) and retail / ecommerce.
When the lock downs began in the US for the global pandemic, we saw many of our partnering retailers directly impacted. Global NV watched our fastest growing retailers in the airports (Hudson News and Minutes Suites) move from a 100+ store increase per month rollout to a cut in store foot traffic by over 96%. Our white label business was impacted by a cancellation of over $2.3M of purchase orders the first week of the lock down. This coupled with a lawsuit against Global NV from an aggressive landlord seeking judgment for in excess of $550,000.00 USD made it apparent that the only way to survive as a company through the pandemic was to seek bankruptcy protection for parts of the company most impacted by the pandemic, commoditization of the CBD molecule (at the time an unknown timeline for the lock down) and potential litigation.
In June of 2021 the company completed the meeting of the creditors in the two bankruptcies which provided a road map for the next phase of operation for CBD Global. Over $4.5M of debt was converted to preferred shares (per the convertible notes with Global NV and GVC Investors). The remaining debt, all on the books of Global NV and Strasburg Pharms will eventually be discharged once the trustee has executed the liquidation of the subsidiaries’ assets. Upon completion, CBD Global is expected to retain less than $1.0 M USD in debt on its balance sheet with a market cap of $7.5M which we believe is significantly undervalued. Although the past two years has been difficult to navigate, the company is positioned to move forward with less debt on the books and new sources of revenue in an industry with incredible upside. Now we are continuing to shift our attention to distribution, finished product sales into retail and ecommerce, endorsement agreements, white label production and cGMP facility creation or acquisition to meet the anticipated direction from the Colorado Department of Health and Environment and the Food and Drug Administration.
Brad Wyatt, CEO of CBD Global Sciences, shared, “I always knew that this emerging industry would move swiftly and change on a dime, but I would have never anticipated a 14-month shutdown of our economy to be placed right in the middle of that challenge. Sprinkle some litigation from an aggressive landlord during the global pandemic that led to two of our subsidiary companies seeking bankruptcy protection. I will say that the challenges that we just went through not only defined our team as a survivor but will prove to see CBD Global labeled in the near future as a winner! We expect to have the financials delivered to the regulators which will enable the CTO to be lifted within the next week to 10 days.”
ABOUT CBD GLOBAL SCIENCES INC.
CBD Global Sciences, Inc., is a hemp-based CBD producer and branding investment vehicle which currently owns two brands, branded under the name Aethics™ (www.aethics.com) and CANNAOIL (www.cannaoilshop.com), which include CBD Oil tinctures (liquid products), CBD capsules, CBD topicals, Hydration products and Confectionary products. CBD Global Sciences hemp-derived CBD extracts are sold through select distributors, brick and mortar retailers, and online.
CBD Global Sciences, through its wholly owned subsidiaries, Global Sciences Holdings and Legacy Distribution Group, (www.legacydistributiongroup.com ), is delivering quality CBD products from multiple vendors of CBD infused products and non CBD products throughout the Colorado and Wyoming territories, currently servicing over 400 C-store and large box retailers with expansion plans to exceed 5,000 stores in the next 12-24 months.
For further information, please contact Investor Relations, (888) 401-2239, email@example.com
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to future developments and the business and operations of the Corporation after the CSE listing. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. Readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.