CLS Holdings USA, Inc. Announces Significant Debt Reduction Measures

CLS Holdings USA, Inc. (OTCQB:CLSH)(CSE:CLSH), known as CLS and operating in the cannabis sector, recently announced its debt relief initiative. On February 23, 2024, the company repaid principal and interest amounting to $1,526,250. This reduction in debt was achieved through the repurchase of debentures of $1,200,000 in principal, with a waiver of interest of $326,250.

At the same time, CLS secured 13,274,780 of its issued and outstanding shares previously held by the debenture holder, thereby reducing the total number of issued and outstanding shares from 137,675,276 to 124,400,496. This operation aims to strengthen value for shareholders. It was financed by four loans totaling $1,350,000 at an interest rate of 12%, repayable monthly over 24 months.

Andrew Glashow, CEO and Chairman of CLS, highlighted the importance of this strategy in debt reduction and restructuring, also indicating a reduction in borrowing costs by 850 basis points. This operation demonstrates a significant improvement for shareholders, by eliminating 9.5% of issued and outstanding shares.