Forte Group Strengthens Balance Sheet With the Conversion of Promissory Notes and Mortgage

Rhea-AI Summary

Forte Group Holdings (CSE:FGH) has announced significant debt restructuring moves to strengthen its balance sheet. The company has converted $200,000 in secured promissory notes from its subsidiary Naturo Group Enterprises and $100,000 of Naturo Group's second mortgage into 624,998 common shares at $0.48 per share. These Debt Settlement Shares are subject to a hold period until May 21, 2025.

Between December 2023 and May 2024, Naturo Group raised $1,382,065 through multiple tranches of secured promissory notes. The company has demonstrated commitment to financial restructuring by converting $397,064.70 of these notes into common shares between May and October 2024. With the latest debt settlements, Forte Group has reduced its promissory note liabilities by a total of $597,064.70, leaving approximately $785,000 outstanding.

Positive

• Reduced total debt obligations by $597,064.70 through conversion to equity
• Successfully converted $300,000 in debt to equity at $0.48 per share
• Improved balance sheet structure through debt reduction

Negative

• Approximately $785,000 in promissory notes still outstanding
• Share dilution due to debt conversion into common shares
• Debt Settlement Shares subject to 4-month hold period

VANCOUVER, BC / ACCESS Newswire / January 21, 2025 / Forte Group Holdings Inc. (CSE:FGH)(OTC:FGHFF)(FSE:7BC0, WKN:A40L1Z) ("Forte Group" or the "Company"), a diversified lifestyle and wellness consumer packaged goods company, announces that, further to its news release dated January 10, 2025, it has converted the aggregate principal amount of $200,000 in secured promissory notes issued by its wholly-owned subsidiary, Naturo Group Enterprises Inc. ("Naturo Group"), and $100,000 of Naturo Group's second mortgage on its property near Bridesville, British Columbia, into 624,998 common shares (the "Debt Settlement Shares") of the Company, at a deemed price of $0.48 per Debt Settlement Share (the "Debt Settlements"). All Debt Settlement Shares are subject to a statutory hold period expiring May 21, 2025.

Between December 8, 2023 and May 1, 2024, Naturo Group closed multiple tranches of secured promissory note offerings, raising $1,382,065 in aggregate gross proceeds. Demonstrating the Company's commitment to strengthening its balance sheet, $397,064.70 of these promissory notes was converted into common shares of the Company between May 21, 2024 and October 31, 2024.

Now, with the closing of the Debt Settlements, the Company has reduced its promissory note liabilities by an additional $200,000, bringing the total reduction to date to $597,064.70 and leaving approximately $785,000 outstanding under the promissory notes. This milestone represents a pivotal step forward in Forte Group's ongoing efforts to strengthen its balance sheet, improve working capital, and position itself for sustained growth.

About Forte Group Holdings Inc.

Forte Group Holdings Inc. (CSE:FGH) (OTC:FGHFF) (FSE: 7BC0, WKN:A40L1Z) is a diversified lifestyle and wellness consumer packaged goods company. Forte Group develops and manufactures a range of alkaline and mineral-enriched beverages and nutraceutical supplements for both its TRACE brand and private-label clients. Based in British Columbia, Canada, Forte Group owns a pristine natural alkaline spring water aquifer and operates a 40,000-square-foot, Health Canada and HACCP-certified manufacturing facility near Osoyoos, British Columbia. The Company's distribution network includes traditional retail and e-commerce channels, delivering wellness-focused products directly to consumers through its innovative offerings.

On behalf of the Board of Directors:

John Campbell, Chief Financial Officer and Chief Strategy Officer, Director
john@fortegroup.co
604-569-1414

Disclaimer for Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, but are not limited to, expectations regarding the Company's anticipated liability reductions, and the impact on the Company's balance sheet and working capital position,. Forward-looking statements also include the Company's expectations regarding the overall financial impact of these initiatives on the Company's operations. Additionally, forward-looking statements reflect the Company's plans to strengthen its financial position and support its growth. Forward-looking statements reflect management's beliefs, expectations, and assumptions as of the date of this release and are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to: the Company's ability to successfully execute its financial and operational strategies; the availability and receipt of required regulatory approvals; market and economic conditions; potential fluctuations in consumer demand for the Company's products; the ability to generate sufficient revenue to meet financial obligations; risks associated with securing and maintaining financing; competition within the industry; supply chain disruptions; and other risks outlined in the Company's filings on SEDAR+. The Company makes no assurances that the outcomes expressed or implied in the forward-looking statements will be realized and disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. For more detailed information on these and other risks, please refer to the Company's filings on SEDAR+.

Contact Information

John Campbell
Chief Financial Officer and Chief Strategy Officer, Director
john@fortegroup.co
604-569-1414

SOURCE: Forte Group Holdings Inc.

View the original press release on ACCESS Newswire

FAQ

How much debt did Forte Group (FGHFF) convert to equity in January 2025?

In January 2025, Forte Group converted $300,000 of debt into 624,998 common shares at $0.48 per share, consisting of $200,000 in promissory notes and $100,000 of second mortgage.

What is the remaining promissory note debt for Forte Group (FGHFF) after the January 2025 conversion?

After the January 2025 debt conversion, approximately $785,000 remains outstanding under the promissory notes.

What is the hold period for Forte Group's (FGHFF) Debt Settlement Shares issued in January 2025?

The Debt Settlement Shares issued in January 2025 are subject to a statutory hold period expiring May 21, 2025.

How much did Naturo Group raise in promissory notes between December 2023 and May 2024?

Naturo Group raised $1,382,065 in aggregate gross proceeds through multiple tranches of secured promissory note offerings between December 8, 2023 and May 1, 2024.