March 6, 2023 –
Springfield, Oregon — (March 6, 2023) – Silo Wellness Inc. (CSE: SILO) (OTCQB: SILFF) (FSE: 3K7A), converted CAD $40,680.00 of accounts payable debt into common shares on Sunday, March 5, 2023, with the total debt converted year-to-date at over CAD $1 Million. The conversions were made at a previously approved 20-day VWAP share price of $0.011.
With this latest conversion, the company’s total share count will increase to 143,402,271, and the current public float remains at 35,415,282 shares, representing 24.7% of the total shares issued. Silo remains focused on debt restructuring and advancing the Oregon psilocybin agenda as the CSE’s only Oregon-based psychedelics company.
Additionally, the company is currently in negotiations with a non-arms-length potential purchaser of the subsidiary where the terminated licensing agreement debt is marooned. While the parent company is not personally liable for this debt, it will remain on the financial statements until that company is wound up or divested. That debt was reported in previous financial statements as a “substantial contingency liability.”
“2023 has already been a big year for us with our potential Portland-area psilcoybin service center announcement on the back of our CNN coverage,” stated Silo CEO Mike Arnold. “During the uphill climb to develop Oregon assets with little cash available and a decreasing share price, we have remained committed to transparency and maintaining strong relationships with our creditors, especially as the market conditions have continued to deteriorate over the past year and the psychedelic space specifically since our listing.
“By continuing to deliver on our promises in Oregon, we have built a level of trust with our creditors which has presumably given them the reduced level of uncertainty that they have required to convert their debt into shares. We are pleased that they have found value in being shareholders and welcome them to our team.”
As disclosed Saturday, March 4, 2023, our request to the Ontario Securities Commission for reconsideration of our MCTO application was denied and the Company has been notified of the OSC’s intent to issue an FFCTO. The Company tendered additional legal arguments to the OSC yesterday evening explaining Silo’s position that the ordinary and plain meaning of the OSC’s policies is not being applied and that an MCTO is warranted.
Silo Wellness remains committed to providing regular updates on the status of the audit completion as information becomes available.
Mike Arnold, CEO
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, management’s plans regarding 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.
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