C21 Investments Repays $30 Million Debt to CEO Sonny Newman

LOS ANGELES– C21 Investments Inc., a vertically integrated cannabis company, announced today the successful completion of the full repayment of its $30 million senior secured note owed to Sonny Newman, the Company’s President and Chief Executive Officer. This significant milestone, referred to as the “Debt Retirement,” marks the conclusion of a financial obligation incurred during the acquisition of Silver State Relief LLC and Silver State Cultivation LLC in January 2019.

The Promissory Note, initially issued in connection with the acquisition of Silver State, carried an annual interest rate of 10%, which was later reduced to 9.5%. The note was secured against the assets of the Nevada-based limited liability companies. As part of the Debt Retirement, the security against Silver State has been fully discharged, relieving C21 Investments of its annual principal repayment obligation of $6.0 million, plus interest.

Bruce Macdonald, Chairman of the Board of Directors, expressed his satisfaction with the successful repayment, stating, “With our final $0.5 million monthly principal payment on June 1st, we have completed full repayment of our $30 million senior secured note to our CEO, Sonny Newman. Over the past four years, our ability to generate consistent, meaningful free cash flow has afforded us the opportunity to repay the debt without the need for a dilutive or high-cost capital raise. The Company is now better-positioned to extend our retail footprint to align with our recent cultivation expansion. The Board would like to thank Sonny for his strong belief and commitment to the Company, and we look forward to working closely together to build the next phase of C21.”