Total recent loans from CEO and spouse of $400K, including new loans of $150K; CEO increases equity stake
KELOWNA, BC / ACCESSWIRE / November 18, 2015 / Laguna Blends Inc. (CSE: LAG) (the "Company" or "Laguna") announces that Laguna Blends (USA) Inc. ("Laguna USA"), a wholly-owned subsidiary of the Company, has entered into two loan agreements pursuant to which the lenders have loaned an aggregate of $175,000 to Laguna USA. Proceeds of the loans are intended to be used for general working capital and inventory. In addition, Stuart Gray, the Company's President, Chief Executive Officer, Chief Financial Officer and a director of the Company, has recently increased his equity stake in the Company by personally acquiring 243,000 additional common shares of the Company in the open market from October 8 to October 23, 2015. These purchases are disclosed in Stuart Gray's insider reports filed on SEDI at www.sedi.ca. Mr. Gray now holds 5,643,000 common shares of the Company, representing 12.4% of the total issued capital, of which 5,400,000 common shares are escrowed over a term of four years.
"I believe my financial commitment demonstrates my enthusiasm and optimism about the future outlook of Laguna Blends Inc." commented, Stuart Gray, President and CEO.
On July 16, 2015, Mr. Gray advanced a secured loan (the "Original Loan") in the principal amount of $250,000 to Laguna USA. The Original Loan matured on July 16, 2016, incurred 10% interest per annum and was secured against all present and after-acquired inventory of Laguna USA. Subsequent to advancing the Original Loan, Laguna USA became a wholly‑owned subsidiary of the Company and Stuart Gray became a director and officer of the Company.
On November 12th, the Original Loan was assigned from Stuart Gray to his spouse Kathy Gray. On the same date, Stuart Gray's spouse loaned Laguna USA an additional $150,000 CDN (the "Additional Loan") on the same terms and conditions as the Original Loan. Laguna USA agreed to pay the lender a lending fee of 5% of the principal amount of the Additional Loan, which is payable on demand by Laguna USA. An arm's length lender loaned Laguna USA an additional $25,000 CDN on the same terms and conditions as the Additional Loan for a total of $175,000 CDN in new loans.
About Laguna Blends Inc.
The Company's business is focused on the nutritional health benefits derived from hemp. Laguna is a network marketing company that intends to generate retail sales through independent affiliates. Affiliates utilize tools and technology that enable them to build an international business from their own home or while travelling. The first products to be launched are functional beverage products that provide high levels of protein and/or nutrition.
Laguna's products are made from high quality hemp protein. Some of the current products are, "Caffe" an instant, "just add water" hot coffee beverage that contains both whey and hemp protein. In addition, the Company plans to market a product called Pro369. This unique single serving "on-the-go" hemp protein is served cold and comes in 4 delicious flavors. Pro369 is water soluble and can be directly mixed in water or added to milk, almond milk or coconut milk. Pro369 can be blended in a shake or smoothie. The Company intends to sell its products through its independent affiliates in the USA and Canada and anticipates launching its business in early 2016.
ON BEHALF OF THE BOARD
"Stuart Gray"
President, Chief Executive Officer,
Chief Financial Officer and Director
FOR INVESTOR RELATIONS INFORMATION PLEASE CONTACT:
Stuart Gray
250 868 0787
ceo@lagunablends.com
www.lagunablends.com
Forward-Looking Information:
This news release contains "forward-looking information" within the meaning of applicable securities laws relating to statements regarding the Company's business, products and future plans including, without limitation, statements regarding use of proceeds, the expected launch date for the Company’s business, its product offerings and plans for sales and marketing. Although the Company believes that the expectations reflected in the forward looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Such forward looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Company's products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation, and does not intend, to update any forward looking statements or forward-looking information in this news release. The statements in this news release are made as of the date of this release.
