VANCOUVER, BC, June 7, 2022
/CNW/ - Kiaro Holdings Corp. (TSXV: KO) ("Kiaro" or the
"Company") announces that it has entered into an amending
agreement dated effective May 31,
2022 (the "Amending Agreement"), with 1198341 B.C. Ltd. (the "Holder"), a
company beneficially owned and controlled by Daniel Petrov, the Company's Chief Executive
Officer (currently on medical leave), director and significant
shareholder of the Company, in relation to the 8.0% unsecured
subordinate convertible debenture (the "Debenture") in the
principal amount of $700,000
previously issued to the Holder. Pursuant to the Amending
Agreement, the maturity date of the Debenture has been extended
from May 31, 2022 to June 13, 2022 in order to facilitate continued
negotiations between the Company and the Holder with respect to
extending the maturity of the Debenture and the contractual terms
thereunder.
As the Holder is a "related party" of the Company, the Company
has struck a Special Committee of independent directors to
negotiate with the Holder. There is no assurance that the Debenture
will be satisfactorily renegotiated, and as a result, the Company
may need to obtain additional financing in order to satisfy its
repayment obligations under the Debenture and to meet its cash
commitments.
Kiaro Holdings Corp.
Based in Vancouver, British
Columbia, Kiaro is an independent, omni-channel cannabis
retailer and distributor. Through existing storefronts across
British Columbia, Saskatchewan, and Ontario, and with the completion of the recent
acquisition of Hemisphere Cannabis from Aegis Brands, Kiaro has 16
stores in operation and another two expected in early 2022. This is
in addition to its wholesale distribution division servicing
Saskatchewan, and eCommerce sites
in Canada, the US and Australia. Kiaro is driven to introduce new
and experienced consumers to a lifelong exploration of cannabis.
With more than 70 years of collective retail and wholesale focused
experience, Kiaro's leadership team has a proven track record of
executing on acquisitions and financings, and moreover growing
brands across North America. The
Company plans to continue its growth trajectory through its
consumer-centric retail, eCommerce, and wholesale distribution
segments over the coming years.
Further Information
For more information, visit investors.kiaro.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking
Information
This press release contains statements which constitute
"forward-looking information" within the meaning of applicable
securities laws, including statements regarding the plans,
intentions, beliefs and current expectations
of the Company with respect to the Debenture
and future business
activities and operating performance.
Forward-looking information is often identified by the words "may",
"would", "could", "should", "will", "intend", "plan", "anticipate",
"believe", "estimate", "expect" or similar expressions and includes
information regarding the negotiations of further amendments to the
Debenture and the discharge of the Debenture.
Investors are cautioned that forward-looking information is
not based on historical facts but instead reflect
the Company's management's expectations, estimates
or projections concerning future
results or events
based on the opinions, assumptions and estimates of management considered reasonable at
the date the statements are made. Although
the Company believes
that the expectations reflected in such
forward-looking information are reasonable, such information
involves risks and uncertainties, and undue reliance should not be
placed on such information, as unknown or unpredictable factors
could have material adverse effects on future results, performance
or achievements of the Company. Among
the key factors that could cause actual results
to differ materially from those projected
in the forward-looking information are the
following: the ability of the Company to successfully
negotiate amendments to the Debenture or raise sufficient funds to
discharge the Debenture and fund anticipated financing needs. This
forward-looking information may be affected by risks and
uncertainties in the business of the Company and
market conditions.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated,
believed, estimated or expected. Although the Company have
attempted to identify important risks, uncertainties and factors
which could cause actual results to differ materially, there may be
others that cause results not to be as anticipated, estimated or
intended. The Company does not intend, and do not assume any
obligation, to update this forward-looking information except as
otherwise required by applicable law.
SOURCE Kiaro Holdings Corp.