BellRock Brands Secures Financing As It Pursues Repayment And Reorganization Of Its Debt

Author: Vuk Zdinjak | April 11, 2023 08:03am

BellRock Brands Inc. (OTCEM:DXBRF) (CSE:BRCK) has entered into a secured promissory note in the amount of $861,757 and the related security agreement with High Street Capital Partners, LLC, which carries an interest rate of 25% and a maturity date of November 17, 2023. The promissory note was issued in conjunction with a partial repayment of the company's obligations to a consortium of private lenders whose note matured in early January of 2023, as previously agreed among the company, HSCP and the consortium of private lenders on September 19, 2022 when the company announced the sale of its Denver real property. The security agreement entered into by the company and its wholly owned subsidiaries grants a continuing security interest to HSCP in the company's and subsidiary's assets.

The promissory note is part of the company's ongoing efforts to reorganize its maturing debt and reduce its interest expense as it continues to pursue several cash flow-enhancing measures. Although proceeds from the promissory note will not fully satisfy the company's obligations under the private lenders note that matured in early January 2023, BellRock maintains positive relations with the consortium and is actively working on additional measures to address its obligations under the private lenders note.

The company also announced that general counsel and corporate secretary, Eduardo Provencio, has notified the company of his intention to exit the company effective June 2, 2023. Provencio, who started as the general counsel of Mary's Brands in 2016 and took over the same role for BellRock in July 2022, will assist the organization in its search for his replacement, which the company will commence immediately.

Photo by Ryan Lange on Unsplash

Posted In: CSE:BRCK DXBRF