CV Sciences, Inc. Repays Installment Obligation on Convertible Debt
Company Further Reduces Debt and Avoids Dilution to Stockholders
LAS VEGAS, April 04, 2018 (GLOBE NEWSWIRE) -- CV Sciences, Inc. (OTCQB:CVSI) (the “Company”, “CV Sciences”, “our” or “we”) announced today that it has paid the April 2018 installment obligation under its March 1, 2017 Convertible Promissory Note (the “Note”) in cash, thus avoiding the lender’s conversion of this amount under the terms of the Note. The Company issued the Note on March 1, 2017 in the original principal amount of $770,000, which provided the Company the right to satisfy installment obligations in cash or by conversion of the installment amount into shares of our Common Stock at a price determined upon the trading price of our stock during the period immediately prior to conversion. On April 2, 2018, the Company made payment to the holder of the Note equal to $100,000 and the lender accepted this payment.
“As recently reported in our Form 10-K filed on March 29, 2018, we made three monthly $100,000 repayments on this Note during the first quarter of 2018. We are continuing this monthly repayment schedule with this most recent payment. Our financial position continues to be very strong and has well-positioned the Company to satisfy all remaining debt obligations under this Note in cash,” said Joseph Dowling, CFO of CV Sciences. “By repaying this debt obligation in cash, we will be able to avoid further dilutive issuances of our stock to the lender.”
After payment of the April 2018 installment, the amount remaining due under the Note is approximately $224,600. The Company 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 focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors. CV Sciences, Inc. has primary offices and facilities in Las Vegas, Nevada and San Diego, California. 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 April 4, 2018