Golden Grail Beverages Cancels Convertible Debt to Reduce Dilution

Rhea-AI Summary

Golden Grail Beverages (OTC: GOGY) announced a strategic partnership with Rockwell Capital to restructure notes and reduce debt, aiming to minimize stock dilution. The company paid off a $100,000 note from 9/9/22 with $20,602.74 interest, preventing potential conversion into 11,823,725 shares. Additionally, Rockwell will forgive a $100,000 note from 5/9/22 with $23,972.60 interest, avoiding conversion into 12,154,176 shares. Rockwell granted a 90-day interest forbearance while working on debt restructuring.

Positive

• Elimination of $200,000 in convertible debt principal
• Prevention of potential dilution of approximately 24 million shares
• Secured 90-day forbearance on existing notes in default

Negative

• Company still has existing notes in default requiring restructuring
• Additional interest payments of $44,575.34 required

FORT LAUDERDALE, Fla., Nov. 21, 2024 (GLOBE NEWSWIRE) -- Golden Grail Beverages (OTC: GOGY – hereinafter referred to as the "Company"), announced today that are working with Rockwell Capital to restructure its existing notes to reduce debt thereby reducing current and future dilution of the Company’s stock.

"Our strategic partnership with Rockwell enables us to opportunistically retire senior notes, a significant step in optimizing our capital structure. As we continue to prioritize debt reduction, we're demonstrating our unwavering commitment to enhancing shareholder value and long-term financial health," said Scott Lomu, Chief Executive Officer.

First, the Company paid off the $100,000 note from 9/9/22 $100,000 note with $20,602.74 interest that was due on 9/9/24. This note had the potential to convert into 11,823,725 shares. Rockwell will grant a forbearance on existing notes in default for 90 days.

Secondly, Rockwell will forgive the 5/9/22 $100,000 note with $23,972.60 that was due 5/9/24. This note had the potential to convert into 12,154,176 shares. Rockwell will enter into a 90-day interest forbearance while they work with the company on restructuring the existing debt.

Lomu continued, “We will continue to take out and restructure debt in a manner that is accretive to our shareholder value. We expect further debt reduction and improvements in our capital structure to remain a primary goal moving forward.”

About Golden Grail Beverages

Golden Grail Beverages is a rapidly expanding company dedicated to acquiring, innovating, and scaling a diverse portfolio of beverages. With a focus on sustainability and consumer engagement, Golden Grail is committed to providing high-quality, energizing, and refreshing drinks to its customers. For more information, visit https://goldengrailbeverages.com/

https://goldengrailbeverages.com/

https://www.facebook.com/GoldenGrailBeverages

https://www.instagram.com/goldengrailbeverages/

https://twitter.com/goldengrailbev

Disclaimer Regarding Forward Looking Statements

Certain statements that we make may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions. In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would," as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties, and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements.

Investor/Media Contact:

SmallCapVoice.com

Stuart T. Smith

512-267-2430

SSmith@SmallCapVoice.com

Source: Golden Grail Beverages

FAQ

How much convertible debt did Golden Grail Beverages (GOGY) cancel in November 2024?

Golden Grail Beverages cancelled $200,000 in convertible debt, consisting of two $100,000 notes from September 2022 and May 2022.

How many potential dilutive shares did GOGY prevent through debt cancellation?

GOGY prevented the potential dilution of approximately 24 million shares (11,823,725 shares from the September 2022 note and 12,154,176 shares from the May 2022 note).

What is the length of the forbearance period granted by Rockwell Capital to GOGY?

Rockwell Capital granted GOGY a 90-day forbearance period on existing notes in default while working on debt restructuring.