Icanic Brands Company, Inc. (OTCQB:ICNAF) (CSE:ICAN) has entered into a restructuring support agreement with certain holders of its 2019 secured convertible debentures, to effect a proposed recapitalization transaction and secure financing of approximately $2.0 million arranged by insiders of the company.
The recapitalization transaction is the next step in the combination and integration of the Icanic and LEEF organizations following the closing of the merger of the companies on April 21, 2022. The recapitalization transaction will reduce the company’s outstanding indebtedness and debt service costs, improve its overall capital structure and result in an enhanced financial foundation for the company to allow it to move forward and execute upon its business plan. Assuming completion of the recapitalization transaction, the company’s pro forma outstanding indebtedness will be reduced from $14.5 million to approximately $10.9 million and its annual interest expense savings will be approximately $110,000.
