Business
Resonate Blends Closes on Promissory Note and Retires Convertible Debt
Resonate Blends Closes on Promissory Note and Retires Convertible Debt.
About this update from Resonate Blends Inc.
[{"type":"text","content":"\nResonate Blends, Inc. (OTCQB:KOAN), a cannabis-based holding company (“Resonate Blends” or “the Company”), announced today an update to shareholders on its closing of a Promissory Note for $400,000 and the retirement of a previous Textmunication convertible note from Auctus Fund.\n\n\nDear Shareholders,\n\n\nFirst and foremost, we at Resonate Blends would like to remind all of us that we are part of community that begins locally, expands across the country and ultimately beyond our shores to the rest of the world. We are doing what little we can to support the best outcome in the context of this worldwide pandemic. We believe if each of us does our part with calm, rational intentionality and support for each other, we will come out of this a better, stronger and more cohesive world. That is our intent and that is our hope. The choice is ours. We hope you will join us.\n\n\nNow to business. As I announced in our last Shareholder Update, The Company is working diligently to align the capital structure of the public company to the financial requirements of our operating entities. Since taking operational control, we have raised in excess of $1,000,000 in new capital to support operations and to restructure and retire previous Textmunication debt.\n\n\nWe just closed on a Promissory Note (the “Note”) with three (3) accredited investors allowing us to retire a Textmunication convertible note and add working capital into our company. In addition to our equity private placement memorandum (PPM), the closing of this new financing increases our ability to rebuild the balance sheet around a model that supports long-term value. The new funding hits on several important areas for us.\n\n\n\nThe Note allows for 9 equal monthly payments with the first payment due on July 13, 2020\n\n\nWe exchanged our previous Series D Convertible Preferred warrants for common shares priced at .25 with a 60-day lockup period. We have the option to purchase these shares at any time over the next 150 days, if we choose.\n\n\nThe derivative liability feature on the previous warrants is now removed which allows new PPM investors to have increased visibility and confidence in our share structure and capitalization table.\n\n\n\nWith this new funding, we just retired a $167,750 convertible note with Auctus Fund. On March 6, 202...