Cannabis company Flower One Holdings Inc. FONE FLOOF has made several leadership changes, including the appointment of interim CEO Kellen O'Keefe.
The move comes as Ken Villazor resigned as CEO, President and board chair.
In addition, O'Keefe — along with Mitchell Kahn and Eliza Gairard — were appointed to the board of directors. O’Keefe will continue as Chief Strategy Officer, as well.
Amit Varma and David Wesley resigned from the board.
Separately, Nitin Kaushal was named chair of the company’s audit, risk and finance committee, while Salpy Boyajian was named executive vice president and board chair.
The moves come on the heels of a debt restructuring.
The company closed on $10 million of a non-brokered convertible debenture offering that could increase to $25 million.
“With these steps, as well as recent cost rationalizations, Flower One has more flexibility to further its evolving cultivation, production and sales strategies to serve the expanding Nevada market for cannabis consumption,” Interim CFO Richard Groberg stated.
Flower One aims to pay off a lease payment of more than $248,000 tied to a cultivation and production facility in Las Vegas. Its other two loan payments hover $152,000 and $27,000.
Update on Transaction with Subversive Real Estate
In October, Flower One agreed on a $39 million secured term loan with Subversive Real Estate, with an option to sign a sale-leaseback purchase agreement for the company’s North Las Vegas Greenhouse Facility.
In November, Subversive revealed it will not complete its previously announced qualifying transaction, which was one of the necessary terms related to the loan.
Now, Flower One confirmed it will halt the Subversive transaction. It plans to find another partner in relation to a leaseback deal for its North Las Vegas Greenhouse facility.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.