VANCOUVER, British Columbia, Dec. 29, 2025 (GLOBE NEWSWIRE) -- LEEF Brands, Inc. (CSE: LEEF, OTCQB: LEEEF) ("LEEF" or the "Company"), a leading multi-state operator, today announced the full early conversion of all outstanding Canadian-dollar-denominated convertible debentures, in principal amount together with accrued and unpaid interest of approximately CAD $237,000, effective December 15, 2025. This follows the full conversion of ~US$10.5M in convertible debentures announced on December 5, 2025.
The conversion was completed under amended incentive terms that offered debenture holders the opportunity to settle their debentures into units at a conversion price of CAD $0.25 per unit, with each unit consisting of one common share and one common share purchase warrant exercisable at CAD $0.30 for a period of 36 months. Under the early settlement, approximately 946,309 units will be issued.
Strategic Rationale
The full early conversion delivers several important benefits for LEEF:
- Strengthens the balance sheet by eliminating the Company's remaining CAD convertible debenture debt. The Company has two remaining pieces of real estate debt on its balance sheet: one note payable for $4,200,000 at 4% interest and a second for $7,000,000 at 0% interest.
- Improves financial flexibility as the Company scales operations in California and New York, positioning LEEF for strategic growth initiatives, including expanding Salisbury Canyon Ranch and its New York operations.
- Demonstrates continued support from long-standing debenture holders, many of whom have supported the Company through multiple operating cycles.
This early conversion comes as the Company's operational momentum builds, highlighted by 24% year-over-year revenue growth and a doubling of gross margins in Q3.
Management Commentary
"With this milestone, the convertible debenture that originally helped capitalize the Company has now been fully eliminated from our balance sheet," stated Micah Anderson, Chief Executive Officer. "We're grateful to our debenture holders for their years of support and partnership. This marks the start of a new chapter, giving us the flexibility to strengthen and leverage our balance sheet as needed to support future growth and create long-term value."
The Company has also announced that 6,081,053 restricted share units were exercised and settled in common shares of the Company.
About LEEF Brands, Inc.
LEEF Brands, Inc. is a vertically integrated, multistate cannabis operator focused on extraction, manufacturing, cultivation, and product innovation. With operations in California and New York, LEEF partners with top brands to deliver high-quality concentrates, ingredients, and finished goods. The Company's large-scale cultivation project at Salisbury Canyon Ranch and New York processing facility position LEEF for sustainable growth across regulated markets.
For more information, visit www.leefbrands.com.
Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively, "forward-looking statements"), including, but not limited to, statements regarding the Company's future financial condition, operations, and objectives.
Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved.
All forward-looking statements, including those herein, are qualified by this cautionary statement. Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the statements.
There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including, but not limited to, the risks disclosed in the Company's public filings on the Company's issuer profile on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements. For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR+ at www.sedarplus.ca.
LEEF Brands, Inc.
Per: Jesse Redmond, Head of Investor Relations and Business Development
Phone: +1 (707) 703-4111
Email: ir@leefca.com
