Weekend Leadership Focused on Core Business Objectives of US Brand Growth and Preparations for the 2020 Hemp Season at Northern Lights Organics
VANCOUVER, BC / ACCESSWIRE / January 17, 2020 / 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
E-mail: IR@weekendunlimited.com
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.
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.
SOURCE: Weekend Unlimited Inc.
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