DALLAS, Aug. 01, 2018 (GLOBE NEWSWIRE) -- Rocky Mountain High Brands, Inc. (OTCQB: RMHB), a fully reporting lifestyle brand management company specializing in high-quality health and wellness products, announced today that the Company has entered into new agreements with GHS Investments, LLC (“GHS”) which will lower the Company’s financing costs, and improve the terms of our remaining convertible notes with GHS.
Michael Welch, President and Chief Executive Officer of Rocky Mountain High Brands, stated, “We have been very pleased with our relationship with GHS. They helped us during a period when we had very few options because of litigation that the former Chairman of the Board had brought against the original investor in the Company. With the help of GHS:
- We were able to secure funding to settle the Roy Meadows litigation, paving the way to other funding mechanisms for the Company.
- We reduced our convertible debt from $3,534,874 on September 30, 2017 to $1,409,929 on July 31, 2018, which includes $563,450 in principal and $46,540 in accrued interest through July 31, 2018 disputed in litigation with the former Chairman and others.
- We avoided potential dilution of approximately 1.5 billion shares by eliminating this convertible debt.
Mr. Welch continued, “During the fall of 2017, the Company increased its authorized shares from 950 million shares to 4 billion shares for the following reasons:
- The 950 million shares authorized prior to the increase were not sufficient to cover the 2017 fourth quarter conversions of convertible debt issued when the former Chairman was in control of the Company.
- The Company needed additional shares to fund itself with equity financing versus convertible debt under its initial agreement with GHS.
- The Company wanted future unused authorized shares set aside for acquisitions.
It is important to note that just because authorized shares have been increased to 4 billion, it does not mean that we will issue 4 billion shares.
During the same time period, outstanding shares grew from 793,266,046 to 1,648,881,643. The chart below shows the allocation of the shares issued.”
| % | Potential | |||
| Analysis of Common Shares Issued from 7/1/17 to 7/31/18 | Shares | of | Dilution | |
| Issued | Increase | Avoided * | ||
| Roy Meadows Legal Settlement | ||||
| Shares Issued Directly to Roy Meadows | 45,000,000 | 5% | 94,721,315 | |
| Aged Debt Assigned to GHS to Compensate Them for $1,000,000 Cash Payment to Roy Meadows | 222,797,576 | 26% | 1,385,089,000 | |
| Total Shares Issued in Conjunction with Roy Meadows Settlement | 267,797,576 | 31% | 1,479,810,315 | |
| Convertible Note Conversions - Notes Entered Into Prior to 6/30/17 | 282,913,435 | 34% | ||
| GHS Puts-Used to Provide Working Capital to the Company | 250,000,000 | 29% | ||
| Employee Services Rendered | 42,968,215 | 5% | ||
| Vendor Services Rendered | 11,936,371 | 1% | ||
| Total Increase in Shares Outstanding | 855,615,597 | 100% | ||
| * Based on contractual conversion rates applied to the total of principal and accrued interest and outstanding warrants. | ||||
Mr. Welch continued, “As you can see by reviewing the analysis prepared by our Chief Financial Officer, Jens Mielke, a total of 550,711,011 shares, or 65% of the total, were issued as a result of either the Roy Meadows settlement or convertible note conversions for convertible notes that the Company was forced to enter into when the former Chairman was in control of the Company. Of the remaining shares issued, 250,000,000, or 29% of the total were issued to GHS as Puts and were used to provide working capital to the Company, 42,968,215, or 5% of the total were issued for employee services rendered in lieu of cash, and 11,936,371, or 1% of the total were issued as vendor services rendered.”
Mr. Welch concluded, “The Company will continue to lower its financing costs moving forward. As the new HEMPd products reach their potential in the market and our Private Label business launches, we expect to experience positive cash flow operations and will be less reliant on equity financing.”
About Rocky Mountain High Brands:
ROCKY MOUNTAIN HIGH BRANDS, INC., (RMHB) is a publicly-traded, lifestyle brand management company that markets “good for you” products to health-conscious consumers.
We are committed to empowering, motivating and inspiring healthy lifestyle habits that create a positive impact on everyday people. We reach those people with our brand messages and change people’s lives with our products. Our products inspire people to choose wellness and healthy lifestyles.
Our mission is to help people live more productive and healthier lives.
The Company currently markets a lineup of two naturally flavored hemp-infused functional beverages under the name Rocky Mountain High. RMHB also bottles and distributes a naturally high alkaline spring water under the name Eagle Spirit Spring Water. In March 2018, the Company launched its HEMPd product line, which currently consists of CBD-infused topicals and nutraceuticals. The Company will introduce its CBD-infused waters in August, followed by a line of CBD-infused functional beverages in the fourth quarter. The Company recently acquired FitWhey, a unique water-based protein drink that is naturally sweetened, flavored and colored that combines the highest quality whey protein isolate with caffeine. RMHB continues to be innovative through R&D and bringing new products to market.
Our vision is to create and sell “good for you” products that touch people in fun, unique and relevant ways.
For interested investors, our stock symbol is RMHB.
For corporate information, please visit: RockyMountainHighBrands.com
Facebook: https://www.facebook.com/rockymountainhighbrands?fref=nf
Investors Hangout: http://investorshangout.com/Rocky-Mountain-High-Brands-Inc-RMHB-69150/
Investors Hangout is the only authorized Investors blog page for Rocky Mountain High Brands, Inc.
Safe Harbor Act: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
Contact:
Michael Welch, President and Chief Executive Officer
michael@rockymountainhighbrands.com
Investor Relations:
David Seeberger, Vice President and General Counsel
Phone: (972) 833-1585
Fax: (214) 593-5617
david@rockymountainhighbrands.com