OCEANSIDE, Calif., Dec. 21, 2016 (GLOBE NEWSWIRE) -- Sealand Natural Resources, Inc. (OTCPINK:SLNR) (the “Company” or (“Sealand”)) announced Thursday, December 15th that on September 30, 2016, the Company closed an offering of $350,000 of convertible notes (the” Notes”) to two accredited investors. The Notes are due in three years and bear simple interest at 8% per annum with a 13% default rate. The notes are convertible into an aggregate of 350,000 shares of the Company’s $0.001 par value common stock at the shareholder’s option at the lesser of $1.00 per share or 90% of the per share purchase price of any offering or issuance of common shares of the Company prior to the Notes’ maturity date.
The Notes require the Company to become current in its filings with the SEC on or before January 31, 2017 and are secured by the personal guarantee of A. Stone Douglass, the Company’s new CEO.
The Company paid no commissions or other form of remuneration to any person in connection with the sale of the notes. Of the $350,000 of the proceeds from the sale of the Notes, $90,000 was paid to a non-affiliated third party to liquidate a convertible note issued in April, 2014 to such party. The remaining $260,000 of the Note sale proceeds has been and will continue to be utilized by the Company as working capital which management believes will be sufficient to provide adequate working capital for the Company until March of 2017.
Stone Douglass, Sealand’s CEO commented “This infusion of capital has allowed us to repay a troublesome creditor and move forward with our plans to quickly build our brand and increase deliveries of our outstanding Birk product. It also provides us with the cash to complete our audit work, to bring our SEC filings up to date and to uplist from the OTCPink Market to the OTCQB by the end of January, 2017. It also ensures that we be able to purchase sufficient Silver Birch sap from our organic forests to ensure we can meet projected demand for our Birk product. I feel that we are now truly ready for what will prove to be a successful relaunch of the Company.”
While the Company believes that it will be able to become current in its SEC filings, there can be no assurances that this goal will be met. Furthermore, while the Company believes its most recent cash infusion will be sufficient for the Company to meet its short term goals as stated above, there can be no assurances that the Company will not need to raise additional capital to meet its goals or that the Company will be able to raise such additional capital.
About Sealand Natural Resources, Inc.
Sealand is a new product research and development company which harvests and distributes an alternative healthy beverage, Sealand Birk, derived from the sap of the silver birch tree (Betula Pendula). Birk is 100% natural, Non-GMO, certified organic and Kosher. Management believes Sealand Birk is the first corporate commercialization of a silver birch sap based “water”, versions of which have been consumed locally in Scandinavia as health drink for over three hundred years. The product is a blend of silver birch sap currently drawn from certified organic forests in Finland and Lithuania and is a pleasant, slightly viscous lightly sweetened thirst quencher. The sap’s sweetness is derived from its natural low glycemic xylitol (synthetic versions of which are utilized to sweeten many other “healthy” drinks and food products). Silver birch sap contains the largest concentration of xylitol of any of the plants which produce natural xylitol and its well documented health benefits including a very low glycemic index value, 40% fewer calories than sugar, the absence of the necessity of insulin to metabolize, a minimal effect on blood sugar levels, and its ability to kill bacteria and prevent tooth decay and oral disease, among other benefits. Birk water also contains significant amounts of vitamin C, potassium, manganese, thiamin and calcium.
The Company currently bottles Sealand Birk in Denmark and sells the product throughout Europe, Asia and the Middle East. The Company plans to expand worldwide distribution and commence sale in the USA in 2017.
Visit the Company’s website at http://www.sealandnr.com for detailed information about the Company’s healthy drink products.
Safe Harbor Statement
Sealand Natural Resources, Inc. cautions you that any statement included in this press release that is not a description of historical fact is a forward-looking statement. Many of these forward-looking statements contain the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties inherent in Sealand’s business, including, without limitation: the Company may not be able to secure the funds necessary to support its product development plans; and the Company may not ever achieve the market success to sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger companies, technological obsolescence, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Sealand (and the specific risk factors that may affect the realization of forward-looking statements) is set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K and its Quarterly Report on Form 10-Q. Such documents may be read free of charge on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Sealand undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.