Pharmagreen Biotech aims to restructure the debt, protect the

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CARSON CITY, NV, Aug. 11, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — Pharmagreen Biotech, Inc. (OTC: PHBI), a company specializing in the development of the highest quality tissue culture seedlings for the cannabis and hemp, today announced that the Company has voluntarily filed petitions for relief under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the District of Nevada (the “Court”).

“As we began executing our business plan, earlier this year before the spread of COVID-19, we closed a financing that carried toxic terms after 6 months. Due to the pandemic, our ETN process has been delayed because Europe has been shut down for over two months, and these notes have become due and as a result, these lenders are looking for very toxic conversions that would essentially wipe out the company’s valuation.After taking a long time to carefully analyzing our strategic options, we have decided that a voluntary Chapter 11 filing offers the best possible outcome for Pharmagreen,” said Peter Wojcik, CEO of Pharmagreen Biotech. “We plan to commit all of our lenders to settle the debts in a way that is fair and beneficial to all parties in the future.”

The company has filed customary petitions with the bankruptcy court that will, upon bankruptcy court approval, enable the company’s ability to continue in the normal course of business, including, among other things, payment of suppliers and vendors and the use of cash collateral. These petitions are typical of the Chapter 11 process and the Company anticipates that they will be approved shortly after its Chapter 11 filing begins. The Company plans to use the Chapter 11 process to develop a restructuring plan. comprehensive package that will allow the company to emerge from Chapter 11 with a manageable balance sheet.

“We are working tirelessly to accelerate the ongoing restructuring that will allow us to maintain our operational momentum and meet the obligations we have to our shareholders,” Wojcik said. “We could not allow these toxic lenders to further harm our business and the investments made by our loyal shareholders.”

“We believe we can secure the additional funding needed and, coupled with Pharmagreen Inc.’s ETN asset-backed bond which is expected to begin trading in European markets in the near future, we can successfully exit this process. with a more prosperous future.”

About Pharmagreen Biotech, Inc. and WFS Pharmagreen Inc.

WFS Pharmagreen Inc. is a wholly owned Canadian subsidiary of Pharmagreen Biotech, Inc., a publicly traded company (OTC PINKS: PHBI). WFS Pharmagreen Inc. is a cannabis company that is becoming the largest producer of cannabis seedlings through a proprietary tissue culture process with the potential to become one of the largest global players. Pharmagreen’s mission is to advance the technology of tissue culture science and to provide the highest quality 100% germ-free, disease-free and genetically same seedlings of cannabis and other flora while offering DNA testing to full spectrum for plant identification, living genetic preservation use low temperature storage for various cannabis and horticulture plants; the extraction of botanical oils, primarily CBD oil, and to provide laboratory services to the North American cannabis and agricultural sectors. For more information on the company’s progress in building a 63,000 square foot ‘cannabis biotech complex’, please visit www.pharmagreen.ca

Safe Harbor Statement

This press release contains forward-looking statements. These forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company’s actual results to differ materially from those projected in these forward-looking statements. In particular, factors that could cause actual results to differ materially from those in the forward-looking statements include: our inability to obtain additional financing on acceptable terms; the risk that our products and services may not be widely accepted in the marketplace; the inability to compete with others who provide comparable products; the failure of our technology; the violation of our technology with the proprietary rights of third parties; inability to meet consumer demands; inability to replace significant customers; seasonal nature of our business. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements. When used in this document, the words “believe”, “expect”, “anticipate”, “estimate”, “project”, “plan”, “should”, “intend”, “may”, “will”, “,” “potential” and similar expressions may be used to identify forward-looking statements.

OTC Markets or any other securities regulatory authority has not reviewed and accepts no responsibility for the adequacy or accuracy of this press release which has been prepared by management.

Contact information:
www.pharmagreen.ca
Tel: (702) 803 9404
Email: [email protected]

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