Loudpack Completes Amendment and Extension of Convertible Notes

LOS ANGELES, Dec. 3, 2020 /PRNewswire/ -- LPF JV, LLC ("Loudpack" or the "Company"), is pleased to announce it has amended its 8% unsecured convertible notes that were otherwise due November 2020 (the "Old Convertible Notes"). Notes representing approximately $60 million of principal and accrued interest were exchanged for a like amount of new secured convertible notes, due December 31, 2022 (the "New Convertible Notes"). The amendment provides an extension of more than two years and was supported by holders of approximately 95% of the aggregate amount of the Old Convertible Notes.  

Pursuant to the amendment, the Company also: (i) exchanged approximately $7 million of existing secured notes for a like amount of New Convertible Notes; (ii) reformulated its board of directors by, among other things, adding three new independent directors; and, (iii) subject to certain restrictions, obtained the right to refinance its existing real estate loan and to issue up to $20 million more of New Convertible Notes.

Marc Ravner, Loudpack's Chairman & Chief Executive Officer noted "We are proud to reach this consensual agreement with our noteholders, which we believe is a significant vote of confidence in Loudpack, its mission and the California cannabis market,"  Mr. Ravner went on to say "this transaction addresses substantially all of our near-term debt obligations, aligns all of our stakeholders, and provides a path for new financing, paving the way for substantial growth."

Ducera Partners LLC served as financial advisor and Feuerstein Kulick LLP served as counsel to the Company. FTI Consulting served as financial advisor and Pachulski Stang Ziehl & Jones LLP served as counsel to the noteholders.

About Loudpack

Loudpack is a leading privately-held, vertically-integrated cannabis company headquartered in Los Angeles, with a cultivation, manufacturing, processing and distribution footprint across California. The Company brands, produces and distributes cannabis products throughout California. Loudpack sells and distributes its branded products to retailers statewide in California, licenses its wholly owned brands to operators in other markets, provides contract manufacturing services to third parties, and buys and sells cannabis raw materials. The Company's brands distributed in California include Kingpen, Loudpack, Dimebag, and Smokiez. For more information, visit https://www.loudpack.com .

Contact: [email protected]

SOURCE Loudpack

Related Links

https://www.loudpack.com