March 2, 2023 –
Springfield, Oregon–(Newsfile Corp. – March 2, 2023) – Silo Wellness Inc. (CSE: SILO) (OTCQB: SILFF) (FSE: 3K7A), announced that it has reached an agreement with an arm’s length creditor to convert CAD$118,650.00 of accounts payable debt for common shares at a conversion price of $0.011 per share for a total of 10,786,364 shares with the statutory four-month hold. This conversion was made at the 20-day VWAP, which was approved by the Canadian Securities Exchange (CSE) as price protection and expires on March 20, 2023.
$1.04M of Debt to Equity
A total of $1,038,709.32 of debt load that has been converted to 94,428,120 shares this week. Adding these new shares to the pre-existing share capitalization of 35,498,874 will bring the total issued shares to 129,926,994 shares. This will be reflected on the CSE website following the completion of the treasury direction in the normal course.
Assuming a $0.011 share price, the company’s market cap would be at $1,429,197 or, assuming $0.015/share, $1,948,905. The market cap before issuance of the new shares announced this week is $390,487 assuming $0.011/share. The Board believes that decreasing the debt load and the increased market capitalization will make the company more attractive to investors due to the decreased risk of having so many creditors and so much debt ahead of the shareholders in the event of insolvency or asset liquidation. Also, the increased market cap could lead to improved liquidity and help attract institutional investors who may be looking for larger investment opportunities.
Audit Update and Potential Cease Trade Order
As released Tuesday, the Company submitted to the Ontario Securities Commission a request for reconsideration regarding the Management Cease Trade Order application. The OSC had initially denied the request and expressed its intent to issue a failure-to-file cease trade order (FFCTO) after the February 28, 2023 due date (yesterday) against the Company for failure to file the annual documents by February 28, 2023. While the Company has not yet received a response from the OSC, the auditor has indicated that it expects to complete the audit within the next two to three weeks.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking information may relate to anticipated events or results including, but not limited to the issuance of Convertible Debentures, the payment of any Make-Whole Amount, the future payment of the Debenture Commitment Fee, and the Company’s future business plans. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, regulatory, political and social uncertainties and the potential impact of COVID-19. Such risks and uncertainties include, among others, the risk factors included in Silo Wellness’s continuous disclosure documents available on www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Silo Wellness assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.