Bhang Amends Secured Credit Facility with Cannabis Growth Opportunity Corporation
MIAMI, Nov. 20, 2020 (Canada NewsWire via COMTEX) —
Bhang Inc. (“Bhang” or the “Company”) (CSE: BHNG) (OTCQB: BHNGF), a global cannabis CPG brand company with an award-winning portfolio of products, announced today the Company has amended its secured credit facility (the “Credit Facility”) with Cannabis Growth Opportunity Corporation (“CGOC”) (CSE: CGOC) which was entered into on July 17, 2020.
The Company and CGOC amended the Credit Facility for CGOC to provide up to an additional $500,000 in principal for a total of up to $1,500,000 to be used for general working capital purposes. All other terms of the Credit Facility remain unchanged. As of the date hereof, CGOC has advanced a total of $1,350,000 under the Credit Facility.
CGOC is an insider of the Company as it owns greater than 10% of the subordinate voting shares of the Company. Accordingly, the above mentioned transaction represents a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on an exemption from the formal valuation requirements of MI 61-101 available on the basis of the securities of the Company not being listed on specified markets, including the…