CV Sciences, Inc. Repays Convertible Debt
Company Satisfies Obligations on a Portion of its Outstanding Convertible Debt, Avoiding Dilution to Stockholders
LAS VEGAS, Oct. 17, 2017 (GLOBE NEWSWIRE) -- CV Sciences, Inc. (OTCQB:CVSI) (the “Company”, “CV Sciences”, “our” or “we”), market-leading supplier and manufacturer of hemp-derived cannabidiol (CBD) products and developer of specialty pharmaceutical therapeutics, announced today that it has repaid and satisfied all obligation under its May 25, 2016 Convertible Promissory Note (the “Note”). The Company issued the Note on May 25, 2016 in the original principal amount of $2,055,000, which provided the holder of the Note with the right to convert the Note into shares of our Common Stock at a price determined based upon the trading price of our stock during the period immediately prior to conversion. Pursuant to the terms of the Note, the Company had the right, at its option, to repay all outstanding obligations under the Note by payment equal to 125% of the amount then outstanding under the Note. On October 13, 2017, the Company made payment to the holder of the Note equal to $340,645. As a result, the Note has been satisfied in full.
“We are very pleased to announce that we have repaid this convertible debt obligation, which avoids additional dilution to our stockholders that would occur if the Note were converted,” said Michael Mona, Jr., chairman and CEO of CV Sciences. “We have made great strides in growing our business and brand, and our revenues bear this out. Repaying this convertible debt obligation out of cash flow and revenue is a substantial step forward for CV Sciences, as it represents our ability to control the dilutive effect of our financing arrangements.”
Currently, the Company has a total of $810,104 in additional convertible note obligations outstanding. The Company has no immediate plans to retire additional amounts under the remaining debt, but will continue to utilize cash flow in a manner that puts the interest of stockholders first, both in terms of continued growth and managing dilution.
About CV Sciences, Inc.
CV Sciences, Inc. (OTCQB:CVSI) operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and a consumer product division in manufacturing, marketing and selling plant-based CBD products to a range of market sectors. CV Sciences, Inc. has primary offices and facilities in San Diego, California and Las Vegas, Nevada. Additional information is available from OTCMarkets.com or by visiting www.cvsciences.com.
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties.
Released October 17, 2017